the population growth / housing shortage myth, page-41

Actually the trigger was the resetting of adjustable rate mortgages that led to the interest rate bubble bursting in the U.S.

I suspect the trigger to our real estate prices bursting will be one of these three things.

1. China busting.
2. Tightening of overseas credit and Australian banks interdependency on borrowing overseas.
3. Inflation with peak oil and interest rates rising.

I suspect a combination of number 2 and 3 will be the problem with peoples cost of living increasing faster than wages. To curb inflationary pressures, the central banks may be forced to raise rates along with banks raising rates without rba presure as overseas borrowing rates increase.

Don't know when it will happen but with baby boomers retiring and having to downsize it may just end up being the perfect cyclone.