I think prices are likely to drop a bit, particularly first home market once interest rates rise.
However, offsetting that, the recovery in the equity market over the last 3 months means that lots of people sitting on paper losses in super and equity holdings will now be seeing that come back, and so may have more confidence to buy/invest in property.
But given how high prices are already, I do not see any harm in sitting back and waiting. I doubt they are about to jump 20% anytime soon.
