A return to sane house prices would, in some respects, be a redistribution of income back from the baby boomer generation to the struggling generation X and Y.

I purchased my home for $85,000 and watch it increase in value over a 22 year period to $600,000. So what if it now decreases to $500,000?

This gives the next generation (including my children) a chance to imagine the possibility of home ownership again.

And yes, my superannuation has tanked. The dream of a very comfortable retirement is not so rosy as before.

But I want to keep working anyway - although it would be good to have more flexible options, like changing down to four days a week sooner rather than later. Pacing myself. So I can keep working until I'm 65 years old, without feeling it as a bit draining sometimes (which it is occasionally these days even as I am about to hit 50 years of age!).

There is no great loss if house prices fall in Australia. Only if you are a money worshipper. Swings and roundabouts. A fairer suck of the sauce bottle for Gen Y (after all Gen Y are our children - who deserve to the chance to feel self-reliant, rather than dependent upon the financial hands-up from their parents). I'm so glad I haven't re-mortagaged my home and hocked myself to the hilt with "investment properties" like some of my workplace buddies.

It is time for social capital to increase, and the almighty dollar to lose its fascination as the driving force in our lives.

Well the IR cut happened and we can't turn it back.

I worry about is sparking a new property boom.

Several trends related to household income, household formation, and ease of credit, worked together to excessively and unsustainably force up house prices to unfair levels. You can see how overvalued Australian homes are from the charts below.....

http://www.australianpropertyportal.com/Gallery

These factors are combined with unchecked commodification of shelter for the population, caused by misguided governments who omit to regulate house prices, while unfairly allowing over-leveraged bidders to force up housing costs so they (the government) can benefit from vast streams of land tax, stamp duty, and council rates revenue.