Excuse me if this has been posted before. Here's a chart to 2006 showing how prices were almost stagnant for about 10 years. If I can find an up to date one, I'll send that too.
However, "The increase in house prices in Australia has far outpaced the general rate of inflation (Chart 1). On an annual average basis, house prices over the past 20 years have increased by 7.5 per cent (ABS measure) compared with an increase of 3.6 per cent in consumer prices. Over the same period, REIA house prices have increased on an annual average basis by 8.3 per cent, or an increase in ‘real’ terms (i.e. after adjustment for inflation) of 4.5 per cent."
Chart and quote from the Parliamentary Library in case you want to read more - http://www.aph.gov.au/Library/Pubs/rn/2006-07/07rn07.htm.
