Well to an extent...a lot of investors wont be able to be sitting there waiting to buy cheap properties.
A Financing costs have risen ie interest rates so what they can be borow has been significantly reduced.
B The value of their own properties will have fallen so they wont have the equity to borrow against to buy.
C A lot of property investors will see that buying property isnt a sure thing and will direct their money to other investments be it shares bonds cash etc
D the press will write negative articles more and more often scaring more people into selling and less into buying
The list goes on and on...you can bet your bottom dollar agents start telling people to reduce their asking prices..if they dont the agents wont sell many properties and their wages will get smashed...real estate agents look after themselves as number one and the seller as number 2.
As to rents rising thats an interesting one...its still much much cheaper to rent than buy. Note stats from the ABS over the last few years that the number of people to a dwelling is at record lows, put your rents up and people will simply move into shared housing etc...expect a lot more vacant houses to come on the market at a place near you very soon. Rising rents will do nothing to make housing more affordable, fhb etc will all have less money for deposits and will be unable to pay asing prices.
You watch the herd stampede out a little door all at once...lol
