Time to change subjects...
a) limited supply and increasing demand (immigration)
b) increasing building costs of new homes ripples through to all housing
c) increasing minimum expectations (McMansions)
d) increasing wealth trickling down from mining boom
e) increasing cost of capital (interest rates)
f) increasing wage pressure
The increased building costs are due to:-
1) skilled labour shortages (tradies)
2) increasing OHS requirements
3) increasing environmental standards
4) inflation based increases in building materials
5) increasing compliance requirements on builders
And thats before we start discussing land prices, let alone the dramatic wages currently available to ordinary people who are willing to work in unpleasant places for a while and save big deposits. Nor have I factored in a shift from the stock market back to housing (which I suspect will only be transient).
I can't see a lot of these things reversing all together. It seems to me that those who are hoping for a collapse in house prices are really up against it. It may well be that ownership of property will define the wealthy and the poor, and perhaps eventually require legislation to redistribute the wealth (like the UK did with its death duties to force heirs to sell the family castle etc). But that is a long time away; endless cheap land is the historic reason why every Australian expected his own backyard, but those days are disappearing fast and the owners of land are getting wealthier and wealthier.
And rents will go up up up up...
Thats my theory anyway...