You really shouldn’t read this…

First of all let’s get the bad news out of the way.

Respected research group RP Data reports that the median house price in Perth fell by 4.8% in the three months to the end of August. This follows a 2.6% drop in the March quarter.

In addition the Real Estate Institute of WA (REIWA) confirms that the number of properties for sale in Perth has increased from around 11,000 in mid 2009 to 16,000 at the end of September, 2010. The highest number since 2008! No doubt most property watchers would be aware that the market has slowed significantly with Perth being the worst performing market in the country.

But it is not only the real estate market which is suffering (who says property prices never fall?), retail, tourism, manufacturing and property development are all in a slump. Even the banks (yes those greedy ones which caused the GFC and which are now reaping record profits, thanks to taxpayer stimulus) report that housing finance is at it’s lowest level for nine years.

Okay enough of the gloom and doom! It could be worse. Unemployment in USA is currently 9.6% (that’s the official figure. ‘Official’ means it’s actually about double that number.) House prices have fallen by around 30% since 2007 with more to come, by all accounts, and something like 1 in 5 property owners owe more to the bank than the property is worth.

So, by comparison we in Australia are doing quite well. So long as China & Co keep buying our mineral resources we’ll be okay.

But……..! Let’s not go there!

Best wishes

Bernie Kroczek
You’re as safe as houses with us.’

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