In November 2010, The Weekend Australian reported that "Treasury officials preparing the so-called Red Book of briefs for the incoming government were as divided as private sector economists about the strength of the property market."
In December 2010, an MLC investments strategist observed that "residential property looks absolutely obscenely overvalued and seems to offer very, very poor investment prospects."
In March 2011, Morgan Stanley global strategist Gerard Minack said that "we've had 20 years where the Australian consumers have been willing to borrow more to buy an asset that they believe always goes up in value. The classic sign of an asset bubble." and that "home prices are 30 to 40 per cent above fair value."
In October 2009, it appeared that the pricing of homes was being inflated by actions taken in October 2008 aimed at addressing the fallout from the GFC. Housing was identified as an asset class worth shoring up against the type of deleveraging seen in the stockmarket.
The government increased assistance given to first home buyers as part of its 'Economic Stimulus Strategy',. A substantial reduction of RBA interest rates also played a part in maintaining prices
2010: November - The RBA raises interest rates 0.25% to 4.75% citing the "economy is now subject to a large expansionary shock from the high terms of trade"
2011: February - New housing loans approved by Australian banks fall 5.6 per cent to a 10-year low in February.
2011: March - Prosper Australia launches a campaign for a "buyer's strike" in an effort to drive down prices.
2011: April - Melbourne median home price falls by $36000 (6%) to A$565,000 in March Quarter.
2011: May - The number of properties for sale in Melbourne double.
2011: June - Number of home loans in arrears 90 days overdue, rises to 15 year high.