Share shakes: what about your home? - National - smh.com.au "We've long said that we think we are in for a period over the next 12 months where house prices will be flat and a little bit weakened, and that we are in for a 12 months where the amount of home building we do is going to fall," Mr Dale said. "We predict in some markets in Australia [such as Sydney and Western Australia] falls of 5 to 10 per cent [in the next six to 12 months]." BUT REST ASSURED ...Mr Dale went on to say ... House prices had fallen as much as 40 per cent in the US and up to 20 per cent in Britain, but this would not be repeated here, Mr Dale said. Now, who is Mr Dale? Oh thats right hes the Housing Industry Association chief economist. So take note, if the economist shill for the housing industry is warning of house price falls then its going to be serious....no make that plain ugly. So the status thus far is :- - 2008 : 7% house price inflation washout - 2009 : predicted to be 7% house price inflation washout - down 5 to 10% How long will the ip battlers continue to feed their real estate investment alligators? Remember what Warren Buffet says : when you're in a hole, stop digging.