Are the house prices in Australia going to fall?

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Ozmaniac

I'm not in real estate and am not any kind of expert, but I would advise you to buy now wherever you can afford. A situation such as you describe with an affordable suburb near the coast right next to an expensive one is a dream option and it's as good a guarantee as you're going to get that it won't be affordable for much longer. Under $400,000 on the coast is absolutely unheard of along any of the east coast, and interstate migration from over here will guarantee that prices won't stay low or fall in WA.

First home buyers everywhere are finding it more and more difficult to buy their first place and in other states are needing to look in less and less desirable locations to get their foot in the housing door. Your first home is by far the most difficult to get in to, but once you've managed it, if it's in a decent location particularly if it's on the coast or some other waterway, you're home and hosed (in a manner of speaking). Even though prices rise at different rates in different locations, over time, the price of your place will increase like in other areas and your increased equity will make it possible for you to trade up if you wish to do so.

Go for it now before it's too late.

ABCDiamond Britzinoz.com

Some property price movement information from abs

Price movements in the 5 year period from Dec 2002 to Dec 2007

Sydney from $444,000 to $540,000. A 5 year average annual increase of 3.99%
Melbourne from $280,000 to $406,000. A 5 year average annual increase of 7.71%
Brisbane from $208,000 to $412,000. A 5 year average annual increase of 14.65%
Adelaide from $195,000 to $357,000. A 5 year average annual increase of 12.86%
Perth from $205,800 to $467,000. A 5 year average annual increase of 17.81%
Hobart from $128,000 to $310,000. A 5 year average annual increase of 19.35%
Darwin from $195,000 to $418,500. A 5 year average annual increase of 16.5%
Canberra from $291,000 to $477,500. A 5 year average annual increase of 10.41%

Which areas are ready to move again, and is it up or down.

No one knows for sure, but my guess would be that those that have risen the most (Perth & Hobart), must leave some room for the slower movers (Sydney & Melbourne) to catch up eventually.

But if I knew for sure I would be rich. I personally have an investment in Western Sydney, as I feel that the area must bounce back up again sometime.

It could of course all go wrong, and everything drops, but then again, it'll come up again after that anyway, "eventually".

BethanyAS

They are going to fall. over the next 6 or so months then go up. This is due to there being an influx of properties on the market due to families having to sell because of the higher interest rates. It is rumored that interest rates will get down to pre-2005 rates by mid next year so more people will be buying again then.

We were lucky we got in 2002 and bought our first house for 200000 we sold it 3 yrs later for 480000. We were pretty happy with that. We bought our current house on almost the high of the market 2yrs ago for 530000. We are waiting until November and we are going to buy an investment property. The suburb we are looking into gettin this property stood still for about 6 months but is now falling.

warrior is a child

the news say the rates would fall more on the last quarter of this year.

skribblee

hey i suggest you buy know. in sydney where i live, asian investors from overseas are grabbing the real estate from here like its free so as long as there is people buying land and houses the price will be up. i suggest you buy property that is going to increase such as in perth because in mining towns the boom is not going to last forever.

Bandit

Not sure about WA but in QLD house prices have gone up even with high interest rates so i would suggest you buy now as both states are still growing because of the booming natural resources market and neither looks like slowing down

country chikky

BUY LAND!!, if you are livin up north buy land now in perth at max $200,000 then build when you are ready... much better investment

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