Demand v Supply – not a housing bubble

There has been a lot of talk in recent days and weeks by the Australian media that we could be on the verge of a housing bubble. Whilst I am concerned at the level of borrowings that people are taking on and whether they have accounted for future rate rises in their repayments, property prices should be seen as a separate issue with the current Sydney, Melbourne and Brisbane markets showing all the signs of  low supply and high demand. Until this changes, prices will continue to rise and unfortunately you should rent and wait for interest rates to rise where I then think you will see demand taper.