Australia: Leading The Way

Thanks to the reader for this link, "In June last year, a Sydney agent told a family that their home was worth $1.95 million. Nine months later, after reducing the price to $1.15 million, the home remains unsold. Last week the owners refused an offer of $870,000."

"Here's an example. Almost two years ago, in August 2003, a unit in Bondi sold at auction for $655,000. This month, the same unit was auctioned again. The highest offer was $540,000."

There are lessons for us in the Australian bubble, "Now that the property slump is well and truly upon us, there is evidence (or there soon will be) in almost every street."