Essentially I agree that a rise in interest rates could see the booming property market plateau. I have seen Hobart properties double in value in 2 years. 1 year on, prices have risen continued to rise another 50%.

As for the value of property value declining, my opinion is that prices may reduce a small amount, however, I don’t believe that we will see significant reductions in price as new property owners will see the value of there property at a similar level to when they originally purchased, and won’t tolerate an enormous loss. When the market reverts to a buyers market once again, the source of the property bargains will come from the vendors who need to sell a property quickly.

For those selling the property value should be reasonably stable, however the time to sell a property will increase. Don’t let RE agents bully you into reducing the price to offload the property quickly. It’s your decision, not theirs. Make the RE agents do the work they are no longer accustomed to.

Cheers
Marcus