Anyone who professes to know the exact top or bottom of a market cycle is speculating at best and lying at worst. All markets are prone to run on emotion in the short term, over reacting both positively and negatively to economic indicators and government stimulation and restraint. But ultimately, all markets, including Australia’s real estate market, are governed by economic fundamentals.
While our current real estate market may have some more price growth left in it, according to many experts who study the relevant economic indicators, we are now entering into a ‘fully priced to overpriced’ phase. This suggests that a market correction may occur in the not too distant future. Read more