Perhaps in hindsight a lot of property owners will think they paid way too much if the market tanks. So is it fair to say we have
1. People who paid a high very premium who hope prices go up, up, and up so they feel better about how much they paid.
2. People who are unable to afford reasonable housing - being left behind - the people no one cares about because of self interest - as long as their 2 bob job is worth a fortune who cares about the rest...
3. Would be buyers who choose to wait with caution - perhaps for a major correction - return to affordable levels. Why would you pay 550K for a house with no garden, touching the walls of the house next door, with inferior quality and no surrounding infrastructure.
We have jobs being lost, the world far from out of the GFC, high costs of living, a state and public sector way out of sync with the current affordability - requiring tax increases or cuts to services.
I think when Australia avoided the big GFC, instead of saving and preparing for what is going to come, they all went out and got that new car, bigger house, holidays. Lets see whose got clothes on when the tide goes out...