Perth and a Private Real Estate Sale
Private real estate sale with no agent and no commission through Privatepoint, the real estate by owner, for sale by owner (FSBO) free private real estate sale website.
I recently had the pleasure of spending a week in WA and let me say things there are not looking too good for the Australian economy and the real estate sector. This is bad news for a private real estate sale or for sale by owner (FSBO) as it is going to result in lower demand for real estate across Australia.
You only have to open the WA Times to see numerous articles about the mining industry and how what were lucrative and long term contracts with China are now disappearing with the demand for coal drying up. This has resulted in mines laying off staff and in some cases mines moving into liquidation.
This loss of jobs and future job uncertainty has affected the property market in Perth with last quarter property market growth for the state falling to -4.8% and with this quarter forecasts looking even worse. The mining industry and WA economy has been the Australian economy’s savour in the past few years and with this faltering, could mean the Australian economy can’t avoid that recession which keeps hanging around like a bad smell.
As a for sale by owner (FSBO) trying to perform a private real estate sale it could be best to accept that property offer which is just below the price you are expecting to receive. If not, then you need to lock yourself in for a long ride as the Australian real estate market will only go one way from here.
Comments
This is a surprise given the resources boom has been staking up the Australian economy over the past 4 years. You don’t hear much about this in the media here.
Luke Randall
13.11.08
8:47 am
This was always going to happen, China was experiencing rapid development leading up to the Olympics.
They had something to prove to the world and they certainly did do that. Now the Olympics are over they have no reason to spend huge on infrastructure, thats the end of the demand for Australia’s resources!
Trent Piccilo
13.11.08
5:49 pm
They have about 1.3 billion reasons to keep spending on infrastructure, people need places to live and cars to drive. I don’t think their demand for our mining products will reduce just the way they use them will change.
Carol taylor
14.11.08
12:12 pm
You might be right but what happens when first world countries across the world stop purchasing consumer goods made in China. These manufacturers (mostly owned by foreign companies) will lay off workers in China and shut down operations. This will dramatically affect the Chinese economy.
Trent Piccilo
15.11.08
11:32 am
The will definitely be a slow down in Australia, it is already happening. Look at the recruitment industry it has basically come to a halt. I have a mate who runs a recruitment firm he has cut staff from 15 people two months ago down to him and a receptionist.
Things are going to be tough moving forward.
T-Bone
16.11.08
8:48 am
Just look at the way interest rates have reduced over the past three months:
Sep – 0.25
Oct – 1
Nov – 0.75
Dec – 0.5 (expected)
The reserve doesn’t just spin a bottle and reduce interest rates. They have the best minds in the country performing analysis and writing reports about what is going. This unprecedented consecutive reduction in interest rates indicates that their research has not revealed good results.
Drew Burkinshaw
16.11.08
10:11 am