Ok playing the dumb blonde card here There are always lots of posts about "the bubble bursting" and "Property values dropping by 30-40%" etc etc. so now the dumb question...... Why does it matter???? I get that if you are looking to revalue to extract equity for the next buy, it is an issue... but for the regular Mum and Dad who just live in their family home and pay the mortgage on time every month, does the paper value of their house have any actual affect on their life? Sure if they want to sell, their $1m Sydney 3x2x1 might now only be worth $700K, but surely that means the (previously)$1.2M 4x2x2 that they want to upgrade to is now only $800K. or even the property owner who holds an IP previously worth $500K now worth $400K, but the rent still comes in each week, life goes on regardless of the paper value of the house. Why would the bank care what the value is as long as the mortgage is being paid? Has anybody ever had a random valuation from the bank, who then says, "Oh BTW your value is $x down from $y...you need to pay us $50k" What am I missing??