House Prices Halve Without a Recession

House Prices Halve Without a Recession:

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You'll never guess the lead story on Bloomberg this morning. 'Australia Gold Coast Homes at 50% Below 2010 Lure Buyers'. A snazzy photo of the Gold Coast as seen from the Q1 Observation Deck featured.

Just reminding you it's possible, Australia. A 50% drop in house prices without even having a recession. Imagine if a recession was thrown in for good measure.

Of course, this is the Gold Coast we're talking about. Things work a little differently there. We can vouch for that. (You can just make out your editor's university in the background of the photo on Bloomberg.)

What's interesting is that the Reserve Bank's low interest rates are encouraging speculative buyers to come back according to the article. A 50% drop wasn't enough of a lesson. On the Gold Coast, it's once burned, never shy. Just like our pub and club crawling uni days."

'via Blog this'