Can Australia make housing affordable while avoiding a major market crash? We may soon find out

The Australian housing market has been experiencing a downturn, with property prices falling for the seventh time in the past four decades, according to analysis by AMP's chief economist, Shane Oliver. Interest rate hikes have been a major trigger for these declines, making home loans more expensive. However, other factors such as regulatory changes and policy shifts have also played a role in the market's decline.

For instance, the government's changes to property investor taxes have created a psychological shift that makes it harder to predict future outcomes. So far, the decline in home prices seems to be following the pattern of past cyclical downturns, but it is still too early to tell how things will turn out. Despite the market's current struggles, there is a sense that this year's fall in home prices feels different from previous episodes, and the situation may lead to a more stable property market in the long run.