The impact of a tight credit market, upward pressure on interest rates and the flow-on effect on property prices and buyer activity has been dominating the media over the past couple of weeks.

While it is sensible to remain informed about changes in the market and shifts in momentum, it is very important not to panic.

Everyone seems to have an opinion about the property market and the dynamics that affect its health – please remember that some are informed forecasts and some are not, so don't let emotion get in the way of the facts.

Interest rate movement is affected by global factors and domestic economic activity. While inflationary pressures have been driving recent rises, there are also other economic indicators which influence the decisions of the Reserve Bank Board.

As borrowing costs increase and the availability of credit tightens, so consumer spending cools. This period will eventually lead to a further shift and renewed downward pressure on interest rates, followed by a corresponding restimulation of the market.

Despite some negative media reports, real estate activity has been strong in our office over the past month, and internal sales targets have been exceeded in many areas.

While there may be a market-driven correction on property prices in the short-term, in the long-term the Sunshine Coast is still a massive growth area, with more people relocating here than leaving – hence, the market should stay quite robust, despite what's happening in other parts of the country and overseas.

If there is some short-term downward pressure on property prices, this will provide attractive opportunities for investors to add to their portfolios, and could enable more first home buyers to enter the market.

Increased activity due to lower prices will mean market forces of supply and demand kick in and prices should start to rise again.

Real estate is a cyclical industry, and as long as the booms and busts aren't too extreme, the market on the Sunshine Coast should still remain quite buoyant.

It's business as usual at the Amber Werchon office and we will continue to keep our vendors and buyers informed about market conditions, and give advice accordingly.