Of course, we had some very significant increases in prices in 2009 after the financial crisis brought interest rate levels down low as the graph below shows.
With rates having climbed again, there has been a general softening of prices since 2011, more marked in some cities (Brisbane, Perth) than in others (Sydney, Canberra).
Melbourne has weakened too, but this is no surprise after the phenomenal growth shown there.
Values in Sydney have refused to budge downwards, in part because they ostensibly remained flat from early 2004 until 2009 - a period when other cities were booming.
The RBA has also noted that rents have grown strongly and vacancy rates are at particularly low levels - which partly explains why prices have not fallen further than this.