It is that last point that will control the market - no matter what. The market cannot rise to a point where there are no buyers - it's impossible. The market rises and falls on it's way up. often likened to playing with a yo-yo while waking upstairs. At the moment the NZ market is too high and out of kilter with incomes. It may not fall much, but it is unlikely to rise much either. Through the early nineties price levels were too low and hadn't moved significantly for years. So it's not a smooth pattern. In my opinion there is absolutely no possibility of house prices outpacing inflation or general wage rises in the next decade. In other words they will not become less affordable.