Flat prices for 10 years assuming say a 3% inflation rate would mean a 40% drop in real price terms.
I am not suggesting a 40% drop myself (either over 10 years in real terms, or suddenly). But similar to the bulls on this forum, I am predicting a period of either flat or small reductions in price. I would venture to guess at least 5 years of this.
Has anyone thought of the significance that the bulls are predicting flat prices, and the bears a 40% drop? Must be an indicator of something if the most optimistic are predicting flat.
While a 40% drop would be nice to allow some to enter property market easily, it is probably worth considering the impact that would have on all parts of the economy.
