NGF to base your view that 'house prices never go down' come and talk to some of the people in the Western suburbs of sydney who got into there dream, now nightmare, homes who lucky to get between 70-80% of what they paid. And these arnt one offs but whole streets.
At top ends there are always people with to much money who bid up to much because 'they love' the house, they get emotional attachment. I know of people buying houses because the 3 year old said she liked it.
But the general population doesnt have the luxury.
