While the price falls are no doubt difficult for some, including people who purchased in the past couple of years, there are many people sitting on very significant capital gains and there are others who now will find it easier to purchase a home. And of course, in a number of cities and much of regional Australia, things have been more stable.
Unfortunately, there are many firms that either do not perform such calculations or do not act upon them. Were all firms to undertake and act upon such calculations when short-run volatility decreased, VaR calculations would not decrease, because through-the-cycle stress VaRs would not be affected.