There is absolutely a level of protectionism around the Australian Property Market. The difference this time around is the high level of Inflation, which pretty much every developed nation is grappling with, with the only cure being interest rate rises, the US is taking it further with quantitative tightening.
The timing between interest rate rises and the expiry of mortgage holders interest only loans and fixed rate loans in 6 to 18 months time will be the true test of the strength of the market.
Remember in 2012 Bank interest rates were around 6%. It my view Bank interest rates will range between 3.5% to 5% in 12 months time. How quickly they taper will depend on how quickly inflation is controlled.
