Multi-asset returns (and housing)
In trying to work out “where to” for house prices, it is instructive to look at other asset classes, noting that they are down between 15-25%.
Whilst perhaps unpleasant, you could superficially conclude that the value of one’s own home has fallen by as approximately as much.
Generally speaking, geared assets in downturns normally fare worse than ungeared ones.
That’s where this sort of thing is coming from (the below title article from the AFR), which is in turn a function of a) thinking about what a doubling in mortgage rates (ala the US) might do to housing, and b) the relative comparisons described above.
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