I think you are right with stagnation. There is still a possibility of prices falling slightly more than what they have which hasn't been much yet, maybe 10% - 20% in some areas.
However, any more rate rises will tip some people over the edge and force them to sell.
The number of properties for sale have tripled and the time to sell has done the same.
Overall, its hard to predict exactly what will happen, but I don't think it will rise for a while yet -min 18 months. If the economy/mining slows down it could easily bust and badly as people leave the state. But I think you are closer to the mark.
Investment property - no way.
House to live in - well you have to live somewhere but maybe waiting a year and saving more couldn't hurt.
