I think properties will definately fall in some areas as they already are. But we will not have anywhere near the same problems that the US are having. They have been irresponsible with their lending and they also built too many houses. We have a growing population and no oversupply of houses.
The market will dip down and then continue to grow again once the wages catch up and houses become affordable.
We are experiencing a drop now in Perth - a lot of developers are giving cash away to entice buyers. One developer is starting to give away a free Pool. We may experience no growth over a 3- 4 year period which wipes away some of the excessive gains but the fundamentals of the economy are still good and the poulation is increasing and people need houses.
