Only high unemployment or high interest rates will start a property down turn in Australia.
Bought my house 4 years ago when interest rates almost hit 10%. Got a bargain then. It's value when compared to other homes around the area has gone up by 20-30% since then. Thanks to Interest Rates dropping like a rock.
Property market has very different dynamics to a stock market. It's all about location. A property in a prime location will almost never lose its value.
Also lets not forget demographics too. If you live in a suburb where the majority of residents have paid their mortgage off then your house is less likely to lose value as many people will own their homes outright and won't need to sell hence constraining supply.
I too believed that prices were going to fall. They have fallen in some suburbs but risen in other suburbs. Like I said it's all about location, location, location....
