Prices are off, but from unprecedented highs. It could be a one-time adjustment.
The Reserve Bank is worried that a further tightening of lending standards could take the air out of the housing bubble very quickly. Here's the way it could happen.
The Australian housing market is now in a shallow decline, but the issue of interest only mortagages could still send it off a cliff.
Widespread speculation that other banks will follow Westpac’s interest rate rise is already having a dampening effect on house prices, says UNSW's Nigel Stapledon.