Believe that at your own peril. You are all forgetting the most important aspect of this so called 'housing bubble' in Aus. Based on supply and demand, there is still a major under supply of land/housing. Prices may pull back a little but this will be purely cyclical. The way wages are moving in line with inflation, they are steadily winding in this so called 'bubble'. I can't see house prices moving upward a whole lot more, because yes, they are expensive in real terms, but at the same time, the fundamentals supporting these prices are very real. Supply and Demand. You'll need a big set of lungs if you're holding your breath waiting for this bubble to pop.