Last December, I forecasted a 9 percent fall in house prices from their October 2007 peak. That forecast proved to be too conservative. Prices are now down over 13 percent. By the current rate of decline, the price decline should easily touch 15 percent by next month.
It wasn't too long ago that the prevailing consensus was that house prices would keep on rising eternally; there was too much demand; oppressive planning restrictions and hordes of rich foreigners ready to buy up whatever came onto the market.
Where did those ideas go?