The Australian housing market is booming. Prices are rising sharply, auction clearance rates are very strong, sales are surging, and housing finance is around record highs. This is being driven by record low mortgage rates, multiple home buyer incentives, economic and jobs recovery, pent up demand, activity associated with a desire to “escape from the city” and an element of FOMO (fear of missing out).

Forecasts for prices to rise 15% to 20% in total across this year and next now seem consensus. So here we go again with yet another cyclical property boom against the backdrop of poor affordability and high debt levels!

Of course we all know this, but how does the latest upswing fit in the context of the long-term or secular swings in the Australian property market?

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