"Last year, the Australian Treasury released research (http://www.treasury.gov.au/PublicationsAndMedia/Speeches/2012/Productivity-and-Structural-Change) showing that around half of the growth of average incomes experienced over the 2000s was caused by the one-off rise in the terms-of-trade (commodity prices), and that income growth and the economy would face stiff headwinds in the future as the terms-of-trade unwinds "
So if we don't get any income growth in the future, how exactly will house prices continue to rise? They have already risen above and beyond real wage increases. In itself this is unsustainable long term to anyone who understands very basic mathematics, so with future wage increases slated to be anemic (ie inflation only) how will house prices experience strong growth????
