Foxy, I take little notice of economists simply because most come to their assertions from what has happened, not what's going to, or likely to happen.

One advantage of being a successful investor, and small business owner is that we make our descisons based on what's likely to happen. A kimd of crystal ball if you like and, those who don't usually fail as does government time and time again.

A prime example is when the likes of BHP announce a huge profit yet cut staff. It's because they don't care about what's happened, they care about what's likely to happen. A huge difference.

The problem we are facing at the moment is that while we are likely headed for big trouble, our interest rates are now less than Half what they were pre GFC so there's little room to move.

The banks are quietly sh1ting themselves and if they loose their credit card bonanza (huge rates and profits), which is the basis of Bills latest witch hunt, look out!

As said earlier, it is demand caused by over-enthusiastic immigration that is forcing up Sydney prices.

That is an inconvenient truth that the 'endless-diversity-that-Australia-has-to-have' set are in denial of. -The evidence of the negative consequences of over-zealous immigration policy.

It is incontrovertible that large scale immigration is ramping up demand and prices (and taxes and council rates!). That is the elephant in the room that is not being discussed.

More confirmation, from MarketWatch this time,

<Sydney drives Australian house prices higher
Published: June 22, 2015 9:52 p.m. ET

SYDNEY--Australian house prices continued rising in the first quarter of the year, driven almost exclusively by gains in the Sydney market.

The weighted average price of houses across Australia's capital cities rose by 1.6% from the fourth quarter of last year, the Australian Bureau of Statistics said on Tuesday, and by 6.9% from a year earlier.

In the country's commercial capital, Sydney, home prices surged by 3.1%, adding to strong gains over several years that have fanned concerns of an overheating market. The rate of house-price growth in Sydney in the first quarter, both on-year and on-quarter, was close to double that of the national pace.

House prices in Perth, meanwhile, fell both on-quarter and on-year as the resource-rich state is hammered by the recent collapse in the iron-ore price and falling investment in mining activity in Western Australia state.

Official warnings over the pace of house-price growth have escalated. Central bank Gov. Glenn Stevens recently told economists that prices in Sydney were "crazy."..>

The opening line like: there has been a lot of media coverage about Sydney housing market. A little less then 2 years ago, the media were stating Sydney house prices were rising. I'd say the media are driving the Sydney property boom. I speculate 18 months ago, anyone wanting to buy or sell property will be informed by real estate people "there's a property boom coming and or in progress".
Booms generally end in busts... I'd say short boom periods are intentional and not an act of god' "anything can happen". Past history has seen more ends to booms resulting in busts, compared to the last 2002 to 2004 property holding prices at 2004 values for at least 2 years after 2004 end of the property boom. During property low turnover periods property prices may be recommended to be held high by real estates entities. In the end market forces will be blamed as market forces are the new blame it on god entity.