Definitely 100% would do it but not sure about falls less than 60%.
For me personally a fall of about 10-20% would cause me to be depressed (most of my perceived wealth is in my house). Not sure about the economy as a whole. Probably a million other things to consider to be able to answer that question.
Do any historians on here know of anything that has preceded previous depressions such as loose monetary policy, excess debt, excess speculation? Falling house prices may be a symptom but maybe not the cause of a depression. Tighter monetary conditions including higher interest rates and less liquidity will depress asset prices, but I am sure Adrian will have the "courage to act" if needs be.
Housing stock would still provide the same amount of shelter for the same number of people so the economy would not produce any less goods or services at a lower house price, but the wealth effect might mean less consumption and less security for business loans as banks tend to want houses as security so less economic activity. This might help alleviate the climate crisis, the labour crisis, the supply chain crisis and the housing crisis all at once?
https://www.interest.co.nz/property/...come-multiples
Looking at that chart house prices could fall 50% and still be more expensive than historical averages.
I would hazard a guess that any fall of more than 10% will depress most home owners and will result in politicians being told to "do something"
Disclaimer I am very risk averse so have very little debt. Higher interest rates and tighter monetary conditions do not worry me as much as some, although a drop off in house construction will hurt a lot of people and my business would take a hit.
You have a lot of idle curiosity, it might be better served by not listening to a moron like myself, but I guess I choose to post despite my lack of understanding and you can choose whether or not to read it.