I think we are correcting against an overheating, exuberant market. The ballooning prices unsustainable.
We are nowhere near correcting against fundamentals. If unemployment and interest rates rise it will be the mother of all collapses. Don't see that myself. And the government is well aware of the importance of a stable housing market.
Low interest rates, modestly rising unemployment, tax cuts, low availability. Sensibly bought Australian property is cushioned- the question for me is how much unsensibly bought property there is out there.