Picking the right time to buy property can seem like a magic art form, especially considering the factors of interest rates, market conditions and rising house prices.

Recent figures from RP Data Rismark Home Value Index reported capital city house prices rose 10.1 per cent in the 12 months to end of June 2014. But said it was unlikely to be repeated.

The largest capital city gains over the last financial year were in Sydney, 15.4 per cent and Melbourne, 9.4 per cent.

RP Data research director, Tim Lawless said, house prices peaked last August when they rose four per cent and since then, the rate of capital gain has trended towards a more sustainable level.

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Last month Morgan Stanley analysts claimed without a further cut in interest rates, house prices would drop. Another study by Credit Suisse predicted house prices to flatline, amounting to a decrease in prices in real terms.

And Reserve Bank of Australia Governor Glenn Stevens last week warned investors against assuming house prices will always rise.

Overall, he says some rise in prices was to be expected after the falls between 2010-12 given 50-year low interest rates, but the 6-7 per cent growth in outstanding home loans is not a cause of concern for the bank.

So what does this mean for the average punter looking to buy a home or an investment?

Is now a great time to buy?

The short answer is now is as good a time to buy as it has been for some time, says Real Estate Institute Australia president Peter Bushby.

The reason he adds, is that interest rates are at historic lows and they appear to be staying at that level for an extended period.

However, he strongly recommends people purchasing property factor into decisions that interest rates will ultimately rise, particularly as the economy and market continues to improve.

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“If you look at property over longer period of time, historically it goes up; there will be times when it plateaus and times when it drops back. Interest rates fluctuate as well.”

Tips to get the best buy

Watch out for growth: Real estate agent Brendan Fearn from BresicWhitney says to keep an eye out for infrastructure developments as prices increase at three distinct phases as a result of infrastructure investment, namely when infrastructure is announced, when work commences and upon completion.

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“Getting in early, for example, with the Sydney light rail extension can be a great time to buy and enjoy three potential rounds of capital growth,” he says.

“We saw this with the completion of the Anzac Bridge in Sydney which gave Leichhardt and Balmain residents fast access to the city and helped shape some of the most sought after real estate in the inner west.”

Tis the season: Time of year can work favourably as December and January often prove to be attractive months in which to buy with properties left on the market.

“These vendors are motivated to sell, but feel the drop in demand as people go on holiday,” Mr Fearn says. “The longer these properties remain on the market over this period, the more flexible vendors are willing to be.”

Weather forecast: Very hot days or very cold and wet winter days can be a good time to find a value buy.

“When everyone is at the beach, or somewhere warm enjoying a hot cuppa, bucking the trend can often bring just rewards,” Mr Fearn says.