The market is being driven by amateurs taking on residential property investments at boom prices and record low interest rates. It reminds me so much if the stock market boom in 2000. When the amateurs are all jumping on it's time to jump off.
Anecdotal evidence - the house next door to us sold in the first week for $565,000. Our neighbour said he would have been happy to take $515,000. The new buyers are now looking for tenants at $600 to cover their costs but no takers. Ours is a similar house and we pay $400.
Rising interest rates at the end of this year will kill the market. I note what someone said about houses not being day-traded but all markets are emotional and traded on greed and panic. At the moment we are in greed with panic sure to follow.
