Home repossessions surge in WA
Saturday, July 19th, 2008A couple of years ago Western Australia was the place to buy, with the resources boom leading to a real estate boom. The geographically isolated city of Perth suddenly became one of the most expensive cities in Australia. Well, it looks like things might have become a little too big too quickly, as home-repossessions-surge-in-wa-20080718-3hb8.html” target=”_self”>home repossessions have surged 51% over the last 12 months. However, this doesn’t reveal how bad things might really be, as many people sold their homes before they were repossessed.
There’s also the double whammy of falling property prices in addition to home repossessions, and this has lead to some owing more on their mortgage than the market value of their property. According to the REIWA, Perth’s median house price has dropped $30,000 since the start of the year. Of course, like all real estate agents, the REIWA is still incredibly optimistic about property growth in WA:
“It’s hard to escape the fact that significant pent up demand from buyers is just waiting to be unleashed. A strong economy generating strong population growth means there is increasing numbers of people all needing a place to live.
“Particularly now that the market is correcting, prices are coming down and affordability is improving despite some uncertainty on interest rates. Coupled with the recently announced stamp duty cuts taking effect in July, we will likely see new buyer activity pick up through late winter and into spring.”
- house price tops record in December - then drops $14,000 in March” href=”http://reiwa.com/Art/Art-Public-View.cfm?PageUUID=ac3075631b8717c23f4c2924483d6c247a3c-19-Jul-2008-04:07:43:759&Id=10922″ target=”_self”>REIWA President Rob Druitt