I've been cashed up for over 9 months and have bought again. Not where I intended to go but back in Perth for family reasons. Although the market has slipped a bit I feel that the correction is larger than it appears because even while it goes sideways the reality is that it's falling behind the true inflation rate. eg. True inflation rate 8%? Annual real estate price fall 5% Actual '' '' '' '' 13%[approx]
The longer this sideways/slight fall goes on, the less likely a sharp fall is likely because it's already factored in to a degree.
People are less keen to move these days because it's too expensive. In my case the selling agent took $20,000+ and the stamp duty to purchase is $30,000+ That's a huge cost to move and is another reason for slow sales as it chokes the life out of the market.
The good, well established suburbs close in tend to have homes owned by people at that stage in their life where they have no mortgage and therefore no pressure to sell into a crap market like this. I looked hard in the area that I wanted and tried cash offers several times but there are no real bargains unless you go out to the mortgage belt and who would choose to live there given another option?
Hopefully location, location, location still rules when I want to move again.
