Compound growth in house prices over ?

[BENT_8]

Originally Posted by mr smith

When we have an economy that was largely based on refinancing and using home equity as an ATM, falling prices have a massive impact on confidence and reduced spending.
An example I went into some well established motorcycle shops in the Melb CBD, they were throwing demos at me, even for a weekend. The whole scene smelt of desperation.

Agreed.
Infact the recent wave of 0-1% interest offered on new vehicles, i would say, is a direct result of people being unable to finance their new car with their existing mortgage due to the loss of equity.
People cant afford the 8-15% car loans of yester year.