Originally posted by exnzpat
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I dont know the exact numbers, but Tricky is quite correct, most NZers don't have a mortgage.
Owning my own home with no mortgage will not prevent it from losing value.
A surprisingly small percentage difference between supply and demand will have an enormous impact on prices, so most people dont need to be even in the market or paying a mortgage for the market to continue operating. It's only the few people who want to buy NOW that set the price. So if no one wants to buy houses, then the price will fall as sure as night is day. The credit crunch likewise only has to affect a relatively small number of people to have an impact on the market.
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