Hi Tilerman,I've been watching the rise of the Perth market, and...

Hi Tilerman,
I've been watching the rise of the Perth market, and feel there is going to be a correction as with anything when it overshoots the mark.

It's not just the property prices in Perth which are high, but you compare the cost of living to Brisbane (Qld is always most likened to WA) and the the day to day in WA is substantialy higher. Not sure where the 4% CPI figures come from, obviously from Victoria or the like cause the real cost of living in the west has in creased a damn sight more than 4%pa in the last few years.

All this coupled with over extended borrowings at lower rates which are now increasing adn a reluctance of the mining folks to buy at a ridiculous price (cause if you worl in mining you're there to grab the cash so you don't have to work away from home later in life) will allow for a proper cooling off after the stellar run this market has had over the last 6 years.

Look at a few of the real estate sites and quite a few sellers are having to get back to readjusting the BS prices they've been told they can get from unscupulous realtors in Perth. The bottleneck that was late 2006 (4000 properties available for sale at one point compared to 12,000 on market at any given time) has been alleviated and the panicked frenzy that was the market then has been calmed down. What sellers don't understand now is that once the slide begins as like the share market the last few weeks it'll be too late when everyone tries to offload at the same time.

But enough of this speculation, lets revisit where thsi is at in 8 months time, then we'll see who where the dust settles. The weather is beautiful in Perth to day and Kings Park is a great place to take a few breaths and get some perspective back on events of the last couple of weeks. Good luck to all in the current climate in property, shares etc etc