Do you believe that mining activity is over its worst?..What about the LNG projects and other significant projects still under construction, these still need to be finished off so there is still jobs and money spent here. If there are no new major projects commencing in year or two, the recession will continue.
IMO there is still more pain to come for the economy. For the housing market, it certainly isn't bottom. It might be getting close to bottom in some localities where falls of 20% from the peak have been seen but i don't think the ripple has flattened out just yet. More distress sales to come as the economic pain drags on, for suburbs that have not seen significant movements in price, a lot of people have been cushioned by lower rates, but i think their time will come in 2017 with further upward movement in rates.
The change in the rate environment comes at a terrible time for WA, rates rising in the midst of a recession - just when low rates are needed most. That's one of the features of the financial system and monetary policy, as it is a national and globally influenced/controlled system - it doesn't discriminate between the needs of different economies.
Remember that this was an epic resources boom, hence the downturn is likely to be just as epic.
