At the end of every property boom cycle, those you bought at or near the peak always suffer.

When the return on cash is barely equal to inflation, people are always going to look for something offering better returns.

Most of us have pretty limited knowledge or options, so often look to housing. If I was looking at property it would be industrial, not domestic.

Note the reference of the nuttiness of low interest rates, which the RBA Governor did indeed say, correctly, that all that would do was put up the price of housing. No mention of the losses caused to self-funded retirees, and the need for more welfare, though.

Note also the recent nuttiness of the Treasurer exhorting people to 'get out there and borrow' because the rates are so low. When governments start encouraging people to borrow rather than save; when governments set the example of continuing to spend money that they are also borrowing; when interest rates are so low, the economy is moribund, and we are all stuffed.