Dear Redmond, i think you have been bitten buy the professors bug which, while I do not disagree that the price of houses will fall, and some significantly, it will not be wholesale across the board and you can buy any house in any location for the reduced prices.
As some have indicated you can buy a house in detriot or cleveland or other rust belt city for basically a nil cost. however, the problem is that these places are low because no one wants to live there due to crime, location, lack of facilities, lack of work etc.
The same will apply to australia, parts of sydney have actually already fallen 50% such as parts of sydneys wild wild west. If you are looking at more salubrious suburbs, then while places in palm beach or mosman have fallen 30%, they are a bit rich for me. i still cant afford the $5m reduced to $3.5m. And if we are talking about median prices there will be some strength as rates drop and rentals still stay strong and FHB come in.
But if you find the house in the right location at the right price, you should consider a purchase as it may not be avilble in the future. good houses will always sell. it is the crap that is left.
