The free mX newspaper reports today that:

Brisbane’s property market is almost 30 per cent more expensive than it was a year ago, a new report has found.

A joint study by the Housing Industry Association and the Commonwealth Bank has found housing affordability in Brisbane dropped 29.1 per cent in the past 12 months.

Clearly there are too many buyers chasing too few properties.  If you’re looking to get into the property market, it may be a good idea to wait and see how the market goes over the next year or two.

In any market, it’s generally not a good idea to go with the herd (who collectively tend to either over exuberance or pessimism). In the property market, although it’s possible prices could be driven by reasonable expectations around future capital gains, clearly there are warning signs:

Morgan Stanley analyst bearish on housing market

Safe as Houses (from The Economist) [hover your mouse over “Australia” in the legend]

Disclaimer: I’m not a property market expert, so please don’t sue me based on this post.