Real Estate Institute of Western Australia (REIWA) claims that the housing prices fall 3 per cent: REIWA says since June the prices have fallen and the city house price has decreased since the last three years. The growth rate has increased from 8.2% to 13.2%. It is also predicted a further dip of 1% is expected by the economist.

Of all the Australian cities, Perth experienced the largest fall, down by 2.4% and the house rates are falling at a rate of 0.9% whereas, Hobart declined 2% and Canberra 1.4%. It is also seen that the house prices have come down in the last six months, in spite of the increase in mortgage interest rates. There was also a dip in the prices in the year 2005. Report say that the economy is moving slowly and the Reserve Bank of Australia will reduce interest rates by the end of the year. Even the job markets have gone down according to a private survey where business establishments are thinking twice before hiring a person. Even job advertisements have even slapped. Also internet jobs have gone down by 0.3%.

REIWA has come out with facts that prices have fallen in Perth by 3% in the month of June. It has moved down to four hundred and forty six thousand dollars. Housing prices fall 3 per cent: REIWA says that the markets will slump for the coming months; hopefully it may reduce another interest rate hike. According to REIWA, a fall of around 1.5% means around seven thousand dollars. Therefore, there is a slight hope that the rates may cool down subsequently.

REIWA sees that by 2008 the markets will correct and the following years 2009 and 2010 would definitely see a standardized market. Another solution for the problem is renting out properties than selling them as the markets do not fetch a good price. This has led to the increase in the rental properties which are made available to opt from. The rental vacancy rate has gone up from 1% to 3%. Housing prices fall 3 per cent: REIWA shows the data that house price has fallen drastically from April to June in more number of states, particularly in Perth despite the capital boom.

It is also seen that Melbourne and Sydney have experienced the fall and other states will also follow suit. Therefore, they are also cautious about these falls. The median house prices in Sydney stands at $523,000. Housing prices fall 3 per cent: REIWA which has seen the fall by 10% since 2003. Perth has seen the fastest growth rate but has been hanging around 36.6% since June 2005. It should be noted that Perth is the second largest luxurious city after Sydney in terms of house rates. Housing prices fall 3 per cent: REIWA sense these price fall and house price will be corrected by the following year when the markets cool down.