Property is now at its most unaffordable ever compared to wages....

Property is now at its most unaffordable ever compared to wages. That means that it is worse now that when interest rates were at 18% (one of the worst times ever) - which wasn't for very long. So given that back when interest rates were at 18% they still came down and quickly - you where left with a decent mortgage that was easily payable. Now if interest rates came down you would still be left with a huge mortage (if you bought now). I think I would rather have interest rates higher than having a mortage that is high knowing which one can come down.

Here's an interesting article: http://www.businessspectator.com.au/bs.nsf/Article/The-seafood-disease-B7S7R?OpenDocument

I think the last sentence says it all - it will sort itself out eventually. I think that means that the average wage should be able to afford the average house.