Speaking at the Australian British Chamber of Commerce luncheon, Mr Gonski said the global financial crisis was a wake-up call for many property buyers and Australian banks both big and small in relation to future mortgage market lending.
Mr Gonski stressed prudency, both in approaching risk carefully and using formulas to ensure potential buyers can afford what they are doing.
"The big banks and the smaller ones know you can have growing prices as we have had and that over time there will come a time where there is a correction," Mr Gonski said.
"I don’t know if it will be tomorrow or in three months but the fact is anybody who believes that prices will always go up is, I think, a fool.”
Real estate agents appreciate the tempered approach Mr Gonski is suggesting, yet believe the current market is more stable than it has been since 2003.
Principal of Clarke & Humel estate agents Michael Clarke said he has been fielding strong buying interest on every price point between $500,000 and $5 million.
Mr Clarke, who made the top 5 in Real Estate Business’ Top 100 Agents 2014, said he has spoken to so many buyers who have missed out simply because of over analysis.
Mr Clarke told Real Estate Business Sydney had undergone sustained appreciation for the last 12 months and said there are no visible storm clouds on the horizon for potential homeowners.
"The one thing in real estate is that when you get to the higher financial echelons you would be worried about a boom or bust scenario, but if the property is within your budget then go hard, providing you are not speculating and going long term," Mr Clarke said.
"Globally there are no storm clouds looming on the horizon, consumer confidence is high locally, as well as there being low interest rates and a stable political climate."