It is end of september 2009 and the Australian Reserve Bank warns the country regarding the steep increase in house prices. The RBA suggests that the surging house prices could fuel inflation since housing construction lags far behind the current housing market demand. While the government updated the public on a significant improvement on the projected budget position, the RBA warns that the recovering economy will refuel the housing affordability crisis Australia found itself in before the Global financial crisis.

Fears are on the rise that the current crisis level in interest rates will inflate the problem and help create a renewes housing bubble on the Australian market. Analysts point out that while Australia escaped the dramatic value decline as seen in property values in the United States it will in turn still have to deal with an overinflated pricing structure and could benefit from a market correction which now looks more and more unlikely for the near future.