Argh, I wish the banks didn't so exuberantly implement the new LVR rule ahead of time. I was literally a day before my house was about to go on the market.

Still, I don't think it's going to push the prices down, it will just cap them for a while. We'll need some sort of event to push prices down. Probably you will be able to get a few bargains in this market though, say when couples break up and just want to get out.