Im half way through building my house now and not really fussed
if the prices drop as its a long term investment, they will eventually
go back up.

FHOG is still going to be there just not $21,000/14,000 back to $7000,
alot of the builders put there prices up when the increased grant was
introduced so what they were buying was actually over priced and i think
that sucks.

[QUOTE=Makavel]I dont think we have seen the housing market bottom out yet..... i think there are many better places to put your money for a greater return on your investment imo

just my 2cents[/QUOTE]

Ditto. If you are looking for an investment then Brisbane, Melbourne and Adelaide are the places to look at. I just bought a new townhouse (3x2) in melb for under $300k. You can't get shit in Perth for that. I think property in Perth will still appreciate in the next 5/10 years, but not like the gains we had recently. That's a once in a lifetime event.

And if prices do drop in Perth (which I doubt) the drop will be so minimal as to be insignificant. You're not going to pick up something 100k cheaper, maybe 10/20/30k. In fact I think houses prices went up in Perth last quarter didn't they?

I dont think housing prices will drop that much further imo.. But always better to buy in the better suburbs as they seem to hold there value alot more than fringe suburbs.

This being that the finanical squeeze on those ppl that have only just made it into the market need to sell pushing prices down.

[QUOTE=JDM_STYLE]Im half way through building my house now and not really fussed
if the prices drop as its a long term investment, they will eventually
go back up.

FHOG is still going to be there just not $21,000/14,000 back to $7000,
alot of the builders put there prices up when the increased grant was
introduced so what they were buying was actually over priced and i think
that sucks.[/QUOTE]

Not according to what I heard on the radio, come the end of June, its completely gone. So for anyone who wants to use it, make a move now as ALL contracts have to be signed by the end of June to my be able to get it.

I seriously doubt the grant will be comepletely removed in a recession when it was available during a boom. FHO are keeping the economy going atm.

lol Who was the person on the radio? A real estate agent?

[QUOTE=nicecar]I seriously doubt the grant will be comepletely removed in a recession when it was available during a boom. FHO are keeping the economy going atm.

lol Who was the person on the radio? A real estate agent?[/QUOTE]

Actually it was what KRudd said. He believes the grant has served its purpose and done what it was intended to do, and is not renewing/continuing it after June 30

this is the first real recession we have had since 88/89.... back then the recession took about 2 years to really effect housing prices (91/92) and they dropped 15-30% across the board....

we are about 4 months into this recession so imo its too early to really call whats going to happen

unemployment is still going up...even in jobs that were thought to be safe as houses (pardon the pun)

housing prices are already coming down, realestate agents are trying to inflate the market as much as possible to keep public appearances and morale up, but houses are taking a long time to sell and prices will need to come down... a place in kingsley just dropped to below 400k from 430k and still isn't selling.. average house price around there is closer to 500k. The place i'm in (bedford) was listed at 450k and has dropped to 420k , still with no real interest.

some might think its unrelated, but look at what has happened to second hand car prices in the last 6 months....you can buy a 06/07 STi for mid to high 30's, i couldn't sell a low km 02 STi for 25k (avoid the jokes about bug eyes)...

i've no idea whats going to happen, but i would be happy as a pig in shit if they came down another 10-20%, but i've got friends that'll be in deep shit if they do... so if i was the government (god forbid) i'd be trying for a happy medium...

but just remember, early days... and like previously mentioned, the UK and the US aren't doing real flash at the moment either....

fingers crossed for all....

oh, and on the brighter side of, if you had of bought one of those houses in 92ish, (hillarys) for the mid recession price of about 100k, it is worth about 800k now, lol, so long term i'm sure we'll all be fine!!

The only houses that are really being sold in W.A. atm are FHOB that are trying to pick up the cheaper houses aswell as build new to collect the 21k.

Personally I think the market is going to drop back further as soon as Ruddy removes the FHOG because who will be buying houses then! Only those that have money! But money now is tight!

Thus I'd be weary as a first home buyer with trying to collect your 14 or 21K because prices will probably drop back as much as 50k on some homes. Thus the first home owner grant would have meant shite! Food for thought! :)

Entry market has continued to be strong, secondary and tertiary market is picking up momentum (we are the only state to still maintain growth rates - and continue to do so), come this time next year, we will be heading for a stronger swing in growth - my prediction. We are EXTREMELY lucky in WA, we'll be nowhere near bearing the brunt of this 'recession'. Keep in mind the USA has been in recession for 3+ years, yet most public reports say 6 months. Food for thought.