After the first 8 months of this year, continual drops in house prices are beginning to bite. Currently, the national average has reduced by over 3 percent. The latest numbers from RP Data show the previously high-priced Melbourne is leading the drop at nearly 4 percent with Sydney having bottomed and even showing signs of growth.

Despite the present slump in house prices, it appears there are various beliefs out there in consumer-land as to where their values are really going. Research from UMR shows over 40 percent of consumers believe prices will rise within a year, nearly 40 percent say the prices will remain flat and 15 percent expect a fall.