House prices could drop 20pc in crunch

Discussion in 'Property Market Economics' started by Pete Arendt, 2nd Aug, 2018.

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  1. highlighter

    highlighter Well-Known Member

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    That's usually what it means, but remember prices are dynamic, and it's not as simple as those quoted percentages.

    A lot of people also get confused with percentages e.g. if you have a house worth $500,000 and it increases 100% it's gone up to $1,000,000, which is what a lot of people saw in Sydney. But it only needs to fall 50% to return you to the purchase point (I've met plenty of people who think that if they made 100%, they'd still be up 50% even after a 50% loss).

    A 20% loss across the whole market would also not mean the same level of loss for all properties. Some would fall more, some less, some might keep growing.
     
    highlighter, 14th Sep, 2018
    #41
    Ben John1 and Whitecat like this.
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