I think the real cause of the boom was the shear ease in which money was lent out to literally anyone that asked. You want a half a million dollars sir and madam? Sure, and why don't we increase that to 550,000 so you can buy a new car and go to Disney Land too! It's been mad, with a total disregard of debt's ability to punish fools and alike. Finally the public have been been hit hard in the head so now they can think hard before they sign.
You wait and see - the banks have had a big scare. This year loans given to no more than 90% of home values. Next year, 85%. Year after, 80%. It has to be slow to minimise the impact, but they have learn't their lesson. So has the public.
If the economy is managed well, Australian housing will escape the big falls of the UK and US. Just don't ever, ever expect it to appreciate again how it did in the last 8 years.
