Also, I suspect much of this talk in the media about unaffordability has been manufactured by the government so they can pass new laws allowing FHBs to access their Super for a deposit... the govt will then be seen to be addressing the 'affordability crisis'.
We're a long way from the peak of this boom in Sydney.
Passing a law to allow FHBs to access their super for a deposit would be absolutely terrible policy. It will do exactly the opposite of making houses affordable, as the super will just cause an inflationary effect.
The 'affordability crisis' is really only limited to Sydney. Personally I'd like to see people stop whinging and move somewhere else if they can't afford it. The only danger I see in the future in Sydney is apartments. If there was a lax in council regulations and they allowed more supply and got rid of certain height restrictions it could cause an oversupply. That would drive down yields and if the Government made any changes to negative gearing it could burn some investors particularly if corporate body/strata fees were to rise as well.