Anyone scanning over News.com.au early last week would probably have seen the article "US demographer predicts hit to Aussie home prices" where US demographer Harry Dent warns that house prices in Australia could fall by as much as 50 percent over the next three years. This story was picked up by numerous new sites. You can check the the source item at AdelaideNow here.
Mr Dent, who apparently accurately forecast the 2008 global financial crisis, points out that property prices in Australia are massively overpriced no matter what pricing principles you apply. Additionally many thousands of people who simply cannot afford it have ignored all the basic ground rules in order to buy property.
His theory is that the economic and real estate 'bubble' in China is getting close to bursting and that Australia will be hit hard when it does. He asserts that speculating on real estate at this point is crazy.
As a home owner nearing retirement I sure hope he has this all wrong.