Along with Brisbane, Perth has recorded the biggest drop in house prices in the March quarter with a 3.4% drop.Capital cities in Australia suffered the biggest drop in 12 years bringing city medial dwelling prices to $455,000 in March. According to another Australian Property Monitors, the fall in March was 1.1% in Perth, contributing to a 4.1% fall since the beginning of the year. Unit prices in Perth dropped 4.9% in the same period.
Houses continue to come on the market with many buyers holding on to their savings accounts which are enjoying 6% returns. Comparing that with a slumping house market and prospect of paying rather than earning interest, many buyers are holding back from entering the market. A senior APM economist said the slump is due to high levels of stock, decline in first homebuyers and investor activity.
With inflation rate up and the strong Aussie dollar, there is a likelihood that interest rates are about to head back down. This will certainly be something that the housing lobby would like to push for as Australia continues to prosper on everything but property. Commodities, overseas trips and wages are all up and perhaps the new generation is a little more smart about buying in to the "Australian dream" of owning your own home whatever the cost.
If you are wondering how much you can bargain, sellers are selling properties at around 6.5% lower than the original asking price on average, compared with about 5.2% the same time last year.
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