OK, so you've read all the comments in this thread, both bull...

OK, so you've read all the comments in this thread, both bull and bear. So, lets go back to the original post & just look at that chart again.

Then, consider that in Australia we have:
1) Low unemployment,
2) (Supposedly) no housing oversupply,
3) Accommodative FHB grants,
4) Accommodative tax treatment,
5) A reserve bank with room to move rates lower,
6) High income generation from commodities sales to China, and
7) Restrictive planning laws.

Now consider the ramifications for housing if any of these variables above move against you. 3) is being dismantled. 1) and 6) appear to be moving the wrong way. Who knows about the others.

In my book, that is a terrible risk/reward setup.