I can't speak for the Eastern states but I think Perth is pretty much at the start of things heading really South now.
A few similarities I am seeing between here and the post GFC UK market right now...
1) Real estate and apartment agents starting to cold call back through their phone books (I've had two call as I registered interest around 18 months ago).
2) Developers are using more and more 'discounts' to try and lure in potential buyers. I spotted one apartment developer in the local Western suburbs paper with 15% off across the range...! I question if you asked for 20-25% would they take it??
3) House and land package developers are also becoming increasingly keen to sign up punters with '3x first home buyers discount' equaling $45k. These adverts are common on the local radio.
4) The disparity between the real cost of rent and mortgage is widening at an alarming rate. The stress on investor backed mortgages in Perth is getting higher by the month. Apartments now in high density East Perth are being let at around 35% discount of what they were in 2013. That is causing great pain for many marginal investors I am sure.
I can't predict a day, week or month that the market will tumble but I think in Perth alone these factors make it a very poor place to currently invest in a home for yourself, let alone an investment. I am in the market for a place for myself to live (my home) but will continue to rent as the prices are really low compared to a mortgage on a similar place. Until this balances out I will be sitting tight here in Perth.
