I heard an interesting comment on the evening news from a high-profile real estate agent. The suggestion had been made that West Australia's property cycle was fast becoming a dangerous market.

Prices in WA are closing on Sydney's property market rates due to the economic resources boom. Growth of between 20-40% per annum for the past 2-3 years has increased the median price and it appears that Federal Interest Rates will rise from between 0.25%-0.50% when the Reserve Bank meet next week.

Greg Rossen from REIWA made the dubious statement when confronted with the "dangerous market" suggestion that "housing sales will cool and return to the long-term trend of 8%pa." This is true - in the long term view. However, in the short term, growth must cease and possibly decline to correct the "long term average of 8%". Many investors wouldn't have heard this but rather interpreted the comment to mean "at the least you will get 8%pa".

Afraid not. The very least has no depth gauge. It could be 0% or even less.

Time will undoubtedly tell.