Perth housing market correction

[200bhp]

To me the Perth housing market feels very much like pre-2007 UK. Things appear to be booming but that is based largely on the huge project home developments being filled with people who scraped together a $3k deposit just to own their own home.

What's going to happen when these people decide to move on? Who is going to buy their copy-and-paste house?

Surely in 5 years time the developers will still be offering the $3k deposit deals or similar so why would you want to buy one that's been built in 2013 when you could have a new one built-to-order?

There was something on TV the other night saying Perth's population growth is now 2% per year but they must be building thousands more homes than that? Who's going to live in them all, or is it just self-feeding? Get more tradies in to build more houses for tradies to live in whilst building more homes?

Everyone I work with seems to think things will keep going upward but I just dont see it.

[200bhp]

Well, we've decided to test the reserve bank's theory that renting and investing the difference is just as good as buying. Add in the fact that we'd rather live near the beach in a decent house than a copy and paste new build in Ellenbrook and thats the reason we're not buying.

I'll report back in ten years and let you know how it's worked out haha!

[200bhp]

Well, it looks like the correction has started....

https://au.news.yahoo.com/thewest/wa/a/32787973/pe...

[200bhp]

I dont understand who's going to buy all the copy-and-paste new homes they're building up there in Butler etc.

[200bhp]

Builders must be getting desperate with all the big names offering zero deposit, no guarantor mortgages on every other TV advert

[200bhp]

Perth could be the subject of a Coles ad. Going down down......

https://www.google.com.au/amp/s/amp.perthnow.com.a...

[200bhp]

Perth's housing slump 'a lesson for Sydney and Melbourne' - ABC News
https://apple.news/AtRjtt46YTLeqedMItpTiPw

Are we at the bottom yet?

[200bhp]

Yes, the difference from one side of the country to another is significant.

Go back 5 or 6 years and it was the other way around but really, WA is settling down to where it should be relative to the rest of the country.

I found something last night (that I cant find now) which showed the house price growth over ten years in the Perth Metro area to by an average of 0.8% !!

Obviously some areas have gone up but many have gone down.

Edited by 200bhp on Wednesday 26th April 22:43

[200bhp]

7 News last week = We're at the bottom! buy, buy buy!!

7 News this week = We're all doomed, prices are still falling

7 News in a couple of weeks probably = We're at the bottom, buy buy buy!

I find it hard to believe that anyone actually pays attention to all the crap that's on TV in relation to house prices. However, when you read some of the comments on their facebook feeds and those on the sponsored ads from house builders, it seems a lot of people are actually fairly convinced prices are about to go up again.

I heard on the radio earlier this week that some of Australia's highest debt-to-income ratios are in Perth's northern suburbs, north of Joondalup.

[200bhp]

Bibbs said:

I've heard from a few different sources that the mining industry is about to pick up again.

If so, boom time, till the next bust anyhow.

There are a lot of projects on the drawing board, most unlikely to break ground until next year though.