It was just a comparison. I'm not confusing anything. I was simply saying that just because there is a bunch of holders with a 70% stake, that doesn't mean the stock that is available for sale will hold up in price. It will sell wherever the current sellers and buyers meet. Even if 70% of property owners do live in the property, that still leaves 30% that are owned as investments. We only see roughly 5-10% turnover of homes on the market each year and these transactions are what drive market prices, not the families that will stick in their homes through thick and thin.Hobo, you are confusing on how people value houses compared to shares. Share price can go up or down but sooner or later it reverts to it's true value which is mostly tied to it's current earnings and future earning potential. You don't have to sell your shares just because the price has dropped today if you believe in the company and it's earnings.
Your response is suggestive that property prices are tied to nothing but the emotions of buyers, which not true at all.
Australian housing is currently over priced when measured against rents, wages and other assets. We're not talking about 1 or 2 suburbs where a majority of buyers are emotion driven home buyers, we are talking about entire markets.
Which FHOs are those? Of those that bought post recent stimulus only the few that were able to afford to buy in Melbourne might have seen a 30% gain since.On the other hand if the price of my property falls and I need a place to stay I am not going to get rid of it just coz it's value is less now then it was yesterday. It is still serving me the purpose of providing shelter. Just because of the fear of properties declining in value is not going to force me to sell unless I am in financial trouble. And except a majority of FHO I expect rest of OO must have atleast 30% equity in their properties. So even a 30% drop will get them to break even.
But if you'd read the post I wasn't saying that people will be 'forced' to sell, I suggested they might sell out of fear. I'm not suggesting that would be everyone. It doesn't need to be many to drive sharp price falls. Infact some areas are already seeing/have seen sharp falls (e.g. parts of the GC, Cairns, luxury end of some markets, etc).