Kalenge

People need to set their expectations sensibly, but many people entering the market seem to have expectations of having it all from the word go ... 4x2, pool, games rooms, theatre room, mod kitchens, en-suites, close to the beach.

Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.

The "I want it all" crowd who don't have the means to support their desires will always be left wanting.

Gibbo

That is so true and they want the fancy furniture and car to go with it.

jeppy

HEAR !HEAR! AND HEAR AGAIN!

pomtastic

THERE IS NO SHORTAGE IN PERTH!! Alan Bourke president of REIWA has said this on many occassions.

Rental vacancies are at a 10 year high of 4% in Perth, a shortage is when it dips below 1%. Rents are WAY below cost of purchasing a house, how is this a shortage? If you watch the RE market in Perth you will notice that inventory is now picking up NOT shrinking.

freebo

Even if something is in short supply the price doesn't always rise, a market sets a price where both demand and supply exist.

In the UK housing has been in short supply due to underbuilding for many years, exacerbated by the almost complete halt in homebuilding during the GFC, prices still fell, the falls where started by tightening in lending, now supply seems to be returning to the market and prices have started to decline again.

pomtastic

Anyone read the 'What's you Suburb Worth' pullout in the Sunday Times in Perth today.

Most average suburbs are barely unchanged over the year, take into consideration a massive migrant intake, 50 year low interest rates, grants and the Gorgon hoopla. I would of thought rises across the board. My favourite, Mindarie, has dropped 7% in 2009, land -36% but that might be due to smaller block size sold, I'll check with a few agents next week on the land score.

Ho hum, all these people on here telling me prices only ever go up.

MartinLuther

Come on. Name and shame them.

Kalenge

You’re talking about rental vacancy rates. All very well, but unless those vacant rentals end up on the “for sale” market it has no direct impact to someone wanting to buy their own home.

Don’t misquote me – I said housing prices go up in the long run. Of course you’ll find periodic dips from time to time and especially in outer suburbs like Mindarie. It’s easy to pull out the exceptions to prove a certain angle on things. What’s the average?

It really sounds like you’re desperately pinning all your hopes on some crash in house prices so that your dream home will finally come within your grasp. You constantly reassure yourself that this is a very distinct possibility and eagerly grab at any rhetoric in the media that supports this, and cast a blind eye to anything that suggests the converse. The “bubble burst” is talked up so much, that it’s almost as if there’s a 50% chance every day, but despite the odds it doesn’t happen.
While others make a start by getting in at a level of the market that they can afford, in a couple years they’ll be better positioned to make the next step, you may find that the gap has just gotten wider. One step at a time.

ozzieeagle

Perth booms and busts more than any City in Aus.... In fact it would be interesting to see how it compares to other Cities around the world with a similar reputation.

Whats unusual this time around about Perth, is the fact that it still has a higher Median than Melbourne.... up until recently that was unchartered territory for that City. Melbourne is coming back strongly though... and Perth Seems to be going the other way. So when the Medians go back to their traditional normal then I would personally assume the Status Quo is back in place. Could be wrong though.... Melbourne seems to have caught up to Londons Median.... Exchange rate is helping that anomaly though.

Amazulu

I think Status Quo played in Perth recently.

Steve2009

40% less land than last year? Have we lost VIC and NT? Can somebody check please?

The RBA seems to have a vested interest in pushing property. This is quite odd and will no doubt come back to bite them in the butt in the future. Perhaps it's a case that they're fully committed to a bubble now and can't do anything about it except hold onto their pants and hope for the best.

The US and Ireland regulators have been criticised for the lack of regulation that contributed to their bubbles. The Australian Reserve Bank is positively spruiking the boom.

All those units, houses and land that were bought up by FTBs during the boost were only demand brought forward. If you understand supply chain management and the impact of discounting you'll realise that this is going to cause severe problems when there is no new demand in it's place.

Steve2009

What is the material difference between a rental property and a for sale property? A rental property provides housing utility just the same as a purchased property. Sure there is the difference in security of tenure, but it's not worth paying triple or more for your housing utility.
See the Amsterdam study. 0.2% price inflation per annum over 400 years.

77hil

http://www.smh.com.au/opinion/societ...0314-q5yg.html

Another intersting article to chew over.

swigski

The RBA are casting doubt over the accuracy of the ABS quarterly CPI figures. Could the same be said of their house price figures?

http://www.smh.com.au/business/rba-c...0317-qfrg.html

kporte

We are just putting our house on the market and it has been valued at around 20% more than we paid 2 years ago. Still have to sell it of course, will see how that goes!