TheDalekI disagree with your wording, it should be 'best case'...

TheDalek

I disagree with your wording, it should be 'best case' not 'worst case'.

worst case is how far prices over value, or under value.

best case is how close prices fall to reality.

My forcast is prices will return to normality, which is a 50% drop from current.

If the price $ tag halves will depend on inflation and duration (something i know prop investors dont understand).

but at some point normal house prices will return, the trend line is a trend line because its the line prices keep bouncing off throughout history.

House prices wont correct in a hurry until interest rates return to normal levels, while they are at historic lows and people have learnt to accept over price housing as normal people will keep investing in it. which is what we are seeing now.

Probably in the next 6 months, but hopefully not more than 12 months interest rates will start to show their true colours, this is what will correct this bubble. I hope for everyone sake this correction comes inside the nest 2 - 5 years or else there is going to be a lot of australians seriously living in poverty as a result.

has anyone noticed no polition as touched on house prices? :) they are happy to talk about the cost of food and gas, but not housing.. ever wondered why?

so TheDalek, put me down as a 50% fall from current before the next up trend begins.