The home loan brokers at Smartline Rockingham are always “caught up” on current affairs, especially as they pertain to interest rates and the housing market. The newest housing market numbers from CoreLogic RP Data are good news for the housing market in Perth. The latest numbers indicate that Perth’s median house price rose 0.8% in the March 2016 quarter to $523,500.

For comparison, prices dropped 2.1% in last year’s March quarter. According to Cameron Kusher, Research Analyst for CoreLogic RP Data, the Perth market has seen the worst and is on its way back up. While some values are still falling, Mr Kusher sees a “flattening out” of the trend. He thinks prices may stagnate or even drop a small amount this year but will be up again by this time next year.

According to Hayden Groves, President of the Real Estate Institute of Western Australia (REIWA), the housing market will also get a boost from the recent decision to drop the interest rate to another record low of 1.75%. Many experts feel that the rate drop will have its intended effect and stimulate the housing market, both for investors and first home buyers.

What it Means to You

We think the market is still in a “sweet spot” which will have those who miss out on it looking back wistfully and regretfully in five years. Housing prices aren’t rising too much yet and interest rates are low. This is a great combination for buying, whether you are an investor or someone trying to buy their first home. It won’t be this easy for too much longer.

As the rate cuts have their desired effect on the economy, prices will rise. As soon as prices rise, the interest rate will begin to creep back up. If you are thinking of buying anything that requires a loan, we urge you to move quickly while interest rates and prices are still low. Many economists think both will be higher by this time next year.

To learn more, call a home loan broker at Smartline Rockingham today: (08) 9527 1800.