Natarsha Belling

With major tax changes, sliding prices in some suburbs and warnings of more interest rate rises on the way, we ask, will the housing bubble finally burst or could all this ongoing uncertainty actually provide a silver lining?

Mi, thanks so much for joining us.

In regards to, there's a lot of speculation at the moment that the property bubble is about to burst.

Is that true?

Let's talk about, we've seen a decrease in some of the prices in some suburbs across the country, and there has been concern raised about what is called negative equity.

So that basically means, especially with the increase in interest rates, that you're actually now paying more for your property than it's actually worth.

How much of a real risk is that at the moment for people?

I'm glad you've mentioned first home buyers because we know there were some concerns about just the 5% deposit and that for many of those people that have been saving incredibly hard have now faced three or four increases in the official cash rate.

So the bottom line is they've got a very, very small deposit because it's so incredibly expensive to try and buy your first unit or if you're incredibly lucky, your first home.

But then on the back of that, that huge amount of mortgage they've actually had to take out, that huge loan, is then they've had an increase in their repayments.

That financial squeeze, how much pressure is that going to put on those specific homeowners at the moment?

Now, you just mentioned just there you're predicting two more increases in the official cash rate.

Is that something that you think will really, you know, is a concerning development for an economy?

We know the GDP figures that came out this week for a struggling economy, but also put a lot of pressure on a lot of people that are really struggling financially right now.

Me, I love your positivity in such a challenging financial time for so many Australians right now, but I guess a lot of people would want to know as prices are starting to come off a little bit and we know the clearance rate is falling, could now as a silver lining be a good time to try and get into the property market?

We all need a silver lining.

We really appreciate your time, May.

Thanks so much for joining us.

Thank you, Tash, for having me.

That was me, Bowie, an economist at AMP.