They did duly fall by 10 per cent over the next two years -- which was well on the way to meeting my expectations of a 20 per cent drop over five to seven years. But now they are rising again in a renewed bubble, and I expect they’ll soon exceed the previous peak.
I also expect that this new bubble will ensure that, when the hot air finally leaves the Australian Housing Balloon, its deflation will be too slow to result in a 40 per cent fall below the June 2010 level by June 2025—which is the Statute of Limitations on my original call. So I expect to lose the bet, on my own terms.
