I don’t understand why but according to the Australian Financial Review based on “preliminary data from REIWA” it seems the median house price in Perth dropped a further two percent in the June quarter. This has caused the median metropolitan house price to fall under the $500,000 mark to $492,000. This is the first time is since 2007 that the median price has been under $500,000.
With less than three precent rental availability, people flocking into Perth by the plane load, the fortunes that people involved in the mining industry seem to be making, and interest rates sitting at a reasonably un-scary level, I really do not understand why house prices continue to come down.
I guess this is a bit the same as retailers not being able to work out why consumers have stopped spending.
On the upside, for anyone with any spare cash, it would probably be a good time to think about getting into the real estate investment game—assuming prices are not going to fall much further.