1) A good's price can also fluctuate a lot without being sold short. Basically, the law of supply and demand is the underlying force of a good's price fluctuation.
2)The fact that the majority of residential property is owned by owner occupiers does not mean that the supply of residential property can not increase and the demand can not decrease at the same time. An increase in the supply of housing property coupled with a decrease in the demand will send the housing property prices down. Some shares have also have very low percentages of total numbers of shares on issue that are traded every day. However, their prices can still fluctuate a lot. BTA is a good example of such shares. Therefore, the fact that the majority of residential property is ownered by owner occupiers does not necessarily matters when we talk about the price fluctuation of residential property .
3)Owners are not subject to margin calls. But if an owner buys his or her residential property with loan, he or her has to service the loan usually by paying installments. In Australia, the fact is that most of people, both owner occupiers and investors buy their properties with loans.
Shares on ASX are usually fully paid. If buyers buy shares with loans (can be in different forms, such as margin loans, CFDs and Money borrowed from others sources), they have to service their loans. If buyers buy shares with their own money, they do not have loans to service for their purchases of shares. Similarly, if buyers purchase their residential properties with their own money paid for the full prices, they have no repayments to made for their properties in the future. However, if loans are taken out to finance their purchases, then they are subject to repayments, which is similar to margin calls in the case of buying shares.
