You sometimes have to pinch yourself to keep remembering this isn't c50% below the peak-2006 price, but (the non-inflation adjusted) spring of 2000 !
Trophy houses have taken the ultimate bath in this bust.
I made a point sometime ago (which nobody seemed to notice
), that many of these properties were paid for by profits realised from Capital Gains.
Taxed at only 20%, this led to a sizable after-tax disposable income.
The upper-echelons of society purposely structured their income so that it was derived though this lower-taxed method.
As the economy fell, capital gains plummetted as losses mounted, thus effectively wiping out the segment of the population who used capital gains as their primary source of income.