In general, the property market is driven by owner occupiers who make up around 70% of all transactions.
However, property booms are driven by investors and their F.O.M.O (Fear Of Missing Out). Similarly, property downturns are intensified by investor fear just like now when many are staying out of the market driven by F.O.B.E. (Fear of Buying Early.)
All this leads to the cyclical nature of property values and even though there are a few years of flat or falling property prices every decade, well located real estate has increased in value on average by around 8 per cent per annum over the long term.
In our capital cities, all market declines are temporary while the long-term increase in property values is permanent. Imagine if you could buy the house your parents bought at the price they paid thirty or forty years ago; how many properties would you have bought then knowing what they would be worth today?