"Recent figures showing a plunge in housing finance is the early warning sign that Australia's housing bubble has finally reached its debt saturation tipping point. Unfortunately for too many mortgage holders, the only way Australia will see affordable housing again is after an historic housing price correction back down to long-term averages (about 40% below current prices). An asset price deflation and debt deleveraging cycle of this scale would take several years to unfold. But ultimately it would result in affordable and sustainable housing prices again."
