Property sales hit eyewatering $688b in 2021 - but will rate rises sap the surge?

Australia's surging real estate market has exceeded all expections given that this time two years ago at the start of the pandemic, a crash or at least a major correction seemed likely.

Instead, the boom has seen the value of property settlements over the past twelve months hit an eyewatering $688 billion.

But with official interest rates likely to rise this year, how long before skyrocketing property prices come back to earth?

Pexa head of research Mike Gill tells ABC's Peter Ryan the surge has been fuelled by low interest rates and demand for lifestyle changes.