Well the simple answer is - nobody, including me, really knows for sure. Having said that, if I was to take an educated guess I would think that the peak of the market is not too far away. I believe we'll continue to see some modest growth for the rest of the year that will continue to be fuelled by record low interest rates and the unprecedented clearance rates of properties sold via auction. However, as I've said many times before, when the market is running hot it seems like it will never end and alternatively when the market is very slow it seems like it will never get better - but let me assure you both will happen (probably why it's best to take a long term view if investing in real estate...). The signs that are there to see with banks now adjusting the loan value ratios for investors as well as increasing interest rates. The Commonwealth Bank has just placed restrictions on new land developments and how they are funded (which by the way might have a reverse effect of what was intended - to slow the market) and I think other banks will follow suit. When we take into consideration the performance of the economy generally, what is happening to the value of our currency and the machinations of the stock market and we combine this with ratio of average income to average home prices then we start to see a picture of why the housing market is likely to ease (price wise) in the near future.
What this of course means is that everyone's situation will vary considerably depending on their personal circumstances, however for those of you thinking of entering the market just remember that its "time in the market" not "market timing" that matters most as long as you keep the principles of investing in the best possible locations and within a conservative budget in mind and don't get caught up in the hype that currently surrounds the market.
If you would like to discuss this further or how matters may affect you personally, please feel free to give me a call or drop me an email.