Perth house prices forecast to fall

The State Government has forecast that Perth house prices will fall by about 2.2% but return to steady growth by 2012-2013. “House prices in Perth have been falling since the march quarter 2010 and the number of dwellings sold remain at a very low level, consistent with heightened level of consumer evident over the past year, “ the review states. The 2.2% drop in the house prices will be the increased stock level and financial market is not really stable. Because of the global financial crisis, weak housing market and the loss of consumers’ confidence, these are the reflection in the housing market that many has concluded that house prices will really fall.

Despite on all negative outlooks about the housing market, State Treasurer Mr. Porter said that the government was expecting rising incomes, stronger household balance sheets and population growth to boost house prices in 2012-2013 and beyond.” We will have recovery to house prices if investors and home buyers will enlarge their property portfolio, have possible outlook and the government must come clean about the true costs of key projects for the state. According to the budget review, Perth prices are expected to grow 6% in 2012-2013, 5.8% in 2013-2014 and 5.5% in 2014-2015.