There was an article in the West today with BIS Shrapnel predicting only 3% price growth in WA in the next year due to affordability levels being at the same levels as Melbourne and Sydney before the slump.
While I take no notice of BIS Shrapnel’s growth predictions as they are usually way out for WA I can’t help but agree that affordability levels must be at a stage where it will start to restrict price growth.
I think this is the biggest thing that will impact on the Perth property market.The resources boom may continue and supply may be continue to be limited (people can’t afford to move!!), but if people can’t get the finance to buy the properties then prices must consolidate or fall.
ned kelly
GREAT TIME to lock in your equity and top up your loans if you have WA IP’s then ;o)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating Calculatorswould be good if they were even half correct, a balanced market would be better for everyone. unfortunately with the amount of deals still in the pipeline and yet to settle I can’t possibly see how the brakes could be applied so heavily… I dread to think how many unsettled OTP sales (and on-sales) are sitting out there. Will be interesting to see how it pans out.
Well 3 years ago I thought house prices were well above what people could afford.
While I would really like to see a decline in demand for housing in Perth, I definitely don’t see it happening within the next year.
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