Perth House Prices drops 6.7% in 2008

From the WA Business News: 

Perth has recorded the largest annual drop in the average house price in 2008, according to latest figures from the Australian Bureau of Statistics.

The ABS today released quarterly results for average house prices, with the value of homes in Perth falling 0.9 per cent during the three months to the end of December.

The worst hit cities were Melbourne, down 1.7 per cent and Brisbane dropped 1.2 per cent.

Nationally, the house price index fell a further 0.8 per cent in the quarter.

Economists had expected a 1 per cent fall.

Over the year, Perth prices fell 6.7 per cent, while Sydney and Canberra prices were both off 4.1 per cent.

The Reserve Bank of Australia (RBA) is widely expected to cut its cash rate again by at least 75 basis points when its board meets for the first time this year on Tuesday.

The central bank slashed the rate by 300 basis points between September and December last year in attempts to stave off a recession.

The federal government also doubled the First Home Owners Grant to $14,000 for the purchase of existing houses as part of last year's $10.4 billion economic stimulus package, and to $21,000 for newly built homes.

Odds on RBA dropping Interest by 1%

From WA Business News, "The Reserve Bank of Australia is tipped to slash the official interest rate next week to 1960s levels as it continues to try to mitigate the impact of worsening global economic conditions. All 17 economists surveyed by AAP expected the central bank to slash the cash rate next Tuesday to stimulate a domestic economy facing its first recession in 18 years.

Nine economists, a majority, expect the cash interest rate to be cut by 100 basis points, following the RBA's February 3 board meeting, which would take the cash rate to a 45-year low of 3.25 per cent - its lowest since 1964 when regulators set it at 3.18 per cent."

Do you know a broker? Who have you recommended in the past?

I know this is probably asking for trouble but I was wondering what everyone out there thinks of mortgage broker referrals. I have heard  some brokers quietly offer incentives to people who refer them to their friends etc. 

What incentives have you been offered or received by recommending a broker? Is there a particular broker that you would recommend? Why? Leave a comment and if there are any endorsements, take it with a grain of salt especially if its from Anonymous :)