Will market doom and gloom today impact property values long term

Does market doom and gloom today have the potential to impact property values in the long term?

Interest rates and amendments to NSW Stamp Duty exemptions for existing properties which have been the headline property issues this week will almost certainly have an impact on sales over coming months.

However buyers will also look to evaluate the future return on a property as a crucial factor in determining how much they should pay for that property today.

In that context the trend of increased saving and reducing household debt may well have implications for housing values in years to come as has been claimed by some commentators in recent weeks. 

The mortgage has always been the biggest contributor to household debt and over the last decade that proportion has increased as property values have increased.  Some claim a move to reduce household debt will mean a reluctance to meet any ongoing rise in property prices and so value is set to stagnate.

I can see the logic in that argument but I think it fails to take into consideration the fact Australians continue to aspire to own their own home together with the ongoing shortage of housing.

I absolutely believe those two factors alone will ensure long term value of property in Sydney.