Tuesday, June 3, 2014

Interest Rates Steady as House Prices Fall

Perth houses have recorded their fifth straight month of declining prices since the start of the year with dwellings dropping 0.8% in May. Compared to last year, house prices are still up 5.7% but Perth is the only capital city to experience negative growth in 2014.  The median house price is now at $525,000.

Today also comes the news that interest rates will be held steady by the Reserve Bank of Australia but expectations are that interest rates will start to rise by the end of the year. Given the new stamp duty threshhold of $430,000, one would guess that the median house price will probably track backwards in June as well, with the bargaining power shifting back to the buyer with sellers looking to close their sales bu 30 June when the $500,000 stamp duty exemption ends.

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