Posted on Wednesday, August 31st, 2011 in by Matt Garmony
Recent statistical data released by RP Data today revealed the Perth median house price continued to fall in July to $455,000 which indicates a 6.3% drop from the same time last year. Perth was the second worst performer nationally only to Brisbane. Days on the market for properties that are listed for sale has risen to 55 days up 10 days from 12 months ago.
Tim Lawless research Director of RP Data stated “Combined with volatile equity prices, global financial market instability and soft house prices, Australians are understandably reluctant to make high commitment decision at the moment.” In our opinion, although the Western Australian resource sector is performing well, it is very clear we have a two tiered economy.
A report in from The Australian today indicated that economists believe current low inflation, “lacklustre credit growth” falling house prices, and a slowdown in retail spending may give rise to Reserve Bank of Australia cutting official interest rates in the near future. “The central bank has already moved its policy position to neutral, with (RBA) Governor Glenn Stevens telling a government economics committee last week the RBA remained cautious about the world environment and divergent trends in the domestic economy.”
The offical cash rate, which has been at 4.75% for almost 12 months, may have an oportunity to be cut at the next RBA meeting, which in our opinion may provide a slight injection of consumer confidence back into the property market which may bring falling house prices to a halt.