The people who will be hurt if prices drop are people who are over leveraged
I am sure the majortiy of people will not be effected
If the property is your home it is imaterial if it is worth $100 000 or $1 000 000
The loss would only occur if you sold and if you had to sell to move to another area you would be buying at the same depressed price.
So all the drama here about prices dropping 40% etc is just about investors who do not understand the property market and have got themselves into hot water by being greedy.
Any investor with common sense knows to have a plan which suits their income and capacity including the risk factor and that includes the fact that over the life of your loan interest rates WILL go up and come down
