property bubble confirmed -finally, page-15

I would dare say that 20-30% correction is for houses, probably in the Western suburbs area. I am not wanting to insult anyone's mathematics here, but it helps to put on paper what we are talking about.

So for average price of 350K a 20% correction brings it down to 280K. 30% will bring it down to a more sobering 245K. Imagine if you have borrowed 100%. If you are forced to sell you will put a sing on the front saying "Mortgagee Auction". Sorry guys but in the early 90s it was a very common sign and it probably meant you could get a bargain as you were the only one who turned up for the auction.

If interest rates rise to 9-10% by 2005, the 20% correction will be quite conservative.