None of my properties are still at 2003 prices, and 3 of them are in areas that are still booming.
The term "slow down" is key here; this means the stellar growth that a lot of people enjoyed early this century will end.
It will revert back to a slower, steadier rate, but growth nevertheless.
Don't sweat it Devo.
Affordability is still an issue in Mr.and Mrs.Thongville. Across Aus, the average homeowner in the average neighborhood is not able to keep trading up for too much longer, and a lot of the first home buyers are struggling (so we keep hearing).
So, my guess is that the majority of areas will go quiet, especially if another rate rise occurs. I don't think this will cause much of a price drop as most people are not having to sell, but there will be fewer buyers around.
The knock-on affect will be a slow-down in the building industry, Bunnings etc will take a hit, and possibly the bulk of retail, and then the recession will kick in and rates will drop again.
Incidentally Devo; is that sale of that asset you mentioned the "musclecar"?