How many of you out there would be happy buying a home at 20% off current prices at the bottom of the market? I suspect, most if not all of you would be very, very disappointed.
If we asssume prices are already down 10% off the peak. This is very reasonable and probably understates the decline.
Add 15 to 20% inflation over the next 5 years as mentioned in the Anderson Report. (DrHB uncle’s property is renting for close to 30% more today than 5 years ago so this seems like a reasonable assumption for inflation/increasing rental rates).
Then take 20% off the current prices and VOILA!
We effectively have close to a 50% decline in the Real price of housing.
