CoreLogic’s Cameron Kusher has released interesting analysis looking at the past two housing corrections, which saw some major capitals post double-digit peak-to-trough losses:
Looking at the declines which commenced in 2008, the magnitude of falls was fairly minor considering most advanced economies fell into recession as a result of the financial crisis. Hobart and Darwin were relatively unaffected by the declines however, Melbourne (-8.3%), Perth (-6.8%) and Sydney (-6.2%) were more impacted than all other capital cities. The period of decline proved quite short and it has become clear that the stimulus measures effectively staved off sharper declines and possibly a national recession.