Australian property bubble

Okay kiddo, do you know what a bubble is? Think of it like a balloon that keeps getting bigger and bigger until it pops! Well, the Australian property market is a bit like that.

When we talk about a "property bubble" we mean that the prices of houses and apartments keep going up and up, even though they're not really worth that much. This can happen when there are too many people who want to buy houses, but not enough houses to go around.

In Australia, lots of people are buying houses because they think they'll make a lot of money when they sell them later on. But the problem is that sometimes people are paying more for the houses than they're really worth, just because they don't want to miss out on the chance to buy one.

This can be a problem because if house prices keep going up and up, eventually people won't be able to afford to buy them anymore. Banks might lend people too much money to buy a house, and then those people won't be able to pay back the loans, which means banks could lose a lot of money too.

So, basically, the Australian property bubble is a bit like a balloon that might pop if people keep paying too much for houses. We don't want that to happen, because then lots of people will be in trouble.