The Australian bubble has been largely blamed on two things: - Restrictive policies on land release for development which is the simple classic supply/demand e

The Australian bubble has been largely blamed on two things: - Restrictive policies on land release for development which is the simple classic supply/demand explanation - Low credit costs and negative gearing tax concessions which encourage speculation fueled by debt (Keen, Minsky, et al) The First Home Owners Grant and other schemes also stimulated demand but any value was quickly absorbed by the rising prices. On top of this spruikers pushing get rich quick on property also inflated the market. Now, everyone's stuck where they are. A true correction here will require either a normalisation of interest rates or repeal of negative gearing provisions. Neither of which the current Government are likely to allow. Most likely it will be a long slide and a lost generation who's best bet will be waiting for an inheritance. That is if their baby boomer parents don't reverse mortgage the house to fund their retirement.