melbourne auction market in limbo, page-32

UT said,
"I guess since many here want the tradies to take a massive wage cut they are also willing to take a massive wage cut as well - fairs fair isn't it?"

I think you've nailed it UT, that is exactly where we are heading. House prices don't fall in isolation to the rest of the economy, anyone who thinks otherwise is in fairyland. IMO they fall because of a combination of the following factors:
1) Rising costs in family budgets (tick), and/or
2) Rising finance costs (tick), and or
3) Falling income (cross).

I think 3) comes next, and then 2) will change direction in response. 1) will not change because of the lunatics running the asylum (ie; government, no matter what shade they are. Their inbuilt sense of entitlement is a given).