Thursday, October 28, 2010

Perth Housing Prices to Remain Flat

“This quarter’s results show the effect on prices of increased borrowing costs following the normalising of interest rates, together with falling auction clearance rates and lower levels of finance,” APM head of research Yvonne Chan said.
“In the short-term, with national house price growth at 6.1% for the nine months to September, and with expectations of rising interest rates, APM anticipates that prices will remain flat or fall slightly for the remainder of the year with this trend to continue into 2011.
“The outlook for property prices remain stable, supported by an undersupply of new housing, solid population growth, low unemployment and strong income growth.
“Rents are also predicted to increase, and coupled with softer house prices, rental yields will improve encouraging a return of investors to the market.”

APM results released today showed that house prices dropped 1.5% in the September quarter, which supports REIWA's reports for the same period which showed a 4% drop in median house prices.

The general conclusion for buyers seems to be, bargain hard and don't accept a price too easily. The average discount on property listed prices is 8% so at least try haggle down $40k for a $500k property.

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