Thanks for that one. One of the most sober and least shrill posts I've seen on this thread for ages.
My comments pertaining to the Western suburbs did not mention foreclosures. Clearly, this is not an issue. My point is, that IMO, the percentage falls in property values is now highest in these areas. I can't point to any data to support this yet, but is based on me living in the area, and having a close relative who is a property developer who operates in the area.
High interest rates are bad for people who have recently bought a home, I agree one hundred percent. However, for people who are looking to buy a house, the best way for affordability to return is for a period of high interest rates to drive valuations back towards sanity.
Not only is this desirable in an affordability sense, but it is necessary. You will not see a broad rise in valuations again until affordability has improved. I argue strongly that a period of high interest rates, or a recession, are the only way for this process to work itself out over the 2-3yr period you suggest. Whether this comes to pass remains to be seen.
