According to recent statistics, the median house price in Perth is now $460,000, down $14,000 since the $474k record in December 2007. This is good news for house hunters but there is a question about how long this buyers market will continue. Rob Druitt, ever the cheerleader for rising house prices, believes that houses will start heading up once the new stamp duty laws kick in July and that many potential house buyers are sitting on the sidelines waiting for the right time. True.
However, there is also much talk about the possibility of interest rates going up to even double digits in the coming months! This will affect confidence in the real estate market as buyers think twice about tying themselves down to an interest of 10% upwards! We are talking about Generation Y who would continue to try live a comfortable life, even if it means rent or stay at home with mum and dad. Any reason to maintain status quo will be good enough. So how will the coming year wash up? I believe the house prices will continue to flatten out for the rest of 2008. But who am I but a man without a house :)
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