You're right, and new homes in the suburbs are now $1.8 million!
I wonder what will break the camel's back. Looking at things now, I don't expect interest rates to increase much for a long time. Prices that are divorced from fundamentals just means they will eventually plateau (few can afford to pay higher amounts) but not necessarily correct. Some macro economic event such as Chinese pulling out of the market causing a sudden flood of supply or an event that causes speculators to want to get out fast.
I wonder what will break the camel's back. Looking at things now, I don't expect interest rates to increase much for a long time. Prices that are divorced from fundamentals just means they will eventually plateau (few can afford to pay higher amounts) but not necessarily correct. Some macro economic event such as Chinese pulling out of the market causing a sudden flood of supply or an event that causes speculators to want to get out fast.