Definitely a correction coming in some markets, but others will have a period of boom, some have already had a correction and some will just flatline for a while. Not every property market or property in Australia is going to collapse.
Yes people will discover exactly how naked they are, but that happens in every economic climate. Before the GFC even hit there were a lot of people going out of business or bankrupt because they saw people making what looked like easy money. What they didn't realise was that these businesses or entities making money had a client base and done the hard yards and it was paying off when times were good.
If people have gone ballistic and highly leveraged themselves with no thought of the consequences then they deserve to go broke, but I believe the banks have been a little bit cautious and not allowed that to happen in great numbers.
