Wednesday, July 16, 2008

Perth House Prices continue to fall another $14,000

From REIWA announcement:

Data released today by the Real Estate Institute of Western Australia show that the Perth median
house price has dropped a further $14,000 since March, while the rental vacancy rate has returned to normal for the first time in several years. REIWA's preliminary results for the June quarter show a 3 per cent fall in median price, pulling the metropolitan median down from $460,000 in March to around $446,000.

You can read more about it here

Tuesday, July 1, 2008

House search status: nothing

Happy Financial Year! Here's hoping the situation gets happier for home buyers as we celebrate a new year with cuts in stamp duty, reduced taxes and a baby bonus increase (not that I'm expecting). However, in the last five months of the last financial year, we have seen a dramatic increase in fuel prices, child care costs and the interest rate has gone up 0.5% as well.

Every time i visit a friend's newly purchased home, I inevitably come home and log on to to check out what their area is getting. I've come to realise that probably the single most influential factor in home buyers are the people around them. That's how the mortgage brokers get business. People who buy a house are inevitably going to tell everyone within earshot (or facebook-shot) that they have just purchased a new home. After the usual questions of how much and where did you buy, the topic of which mortgage broker/bank did you go with?

Also the location where someone has chosen is also a factor. Some people choose Mt Lawley for the closeness to cafes, restaurants and a direct road into the city. Others prefer a new house away from the city centre, citing the proximity to schools and nicer houses as their reasons. Some are going with units in North Perth or Subiaco for investment purposes. For every person you talk to, your circle of knowledge about real estate and how that whole industry works is broadened. You're that 2c wiser. So a tip from someone who still hasn't bought a house, talk to everyone. People love to show off what they know. Some might even help you look for your house taking the ??? out of househunting.

With the passing of 30 June 2008, new stamp duty rates and REIWA cheering on how great things look despite everyone else predicting downturns... its Game On.. Round 2.

Perth Homeowners Urged to Sell, Sell, Sell

Things are about to get worse... that is the clear and unequivocal warning from Wizard Home Loans founder Mark Bouris has been quoted saying recently. People already struggling to repay their mortgages should look to sell their homes and downgrade before its too late. There are various factors that were outlined by Mr Bouris.

1. Interest rates are not falling anytime soon. The inflation effect on petrol and food etc will inevitably cause the RBA to consider slowing the economy through increased interest rates.

2. Refinancing fixed interest rates people who are on fixed interest rates are soon going to come out of their fixed interest rates and will have to find repayments worth 30% more than what they have been paying. This will no doubt shock many Australian homeowners who may have gotten into a pattern of expenditure that reflects their interest repayments and may find it hard to adjust.

3. Rising cost of living Even without the change in interest rates, people would already notice on FuelWatch that the petrol prices have gone up significantly.

You can read the article here

Meanwhile, the Housing Industry Association of Australia has said that demand for new homes has dropped 5% in May across Australia.
The largest decline in home sales took place in New South Wales, with a fall of 9.4 percent in May. Sales also fell dramatically in Victoria by 6.8 and 4.9 percent in Western Australia. This could be due to buyers waiting for the change in stamp duty which will drop stamp duty by 15% after 30 June.

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