INTEREST RATES ARE DOWN - BUT CAN WE TRUST THAT THEY WILL STAY THERE????

The latest interest rate cut has certainly given the property market a boost, and for many buyers it's a welcome breath of fresh air after years of uncertainty.

On paper, lower interest rates mean borrowers can potentially increase their borrowing capacity and feel more confident about making a move. For people who have been sitting on the sidelines waiting for the right moment, this could be the signal they've been looking for.

But here's the question many people are quietly asking:

Can we really trust that there won't be another rise around the corner?

After years of mixed messages, changing forecasts and promises that haven't always matched reality, it's understandable that many Australians remain sceptical. Homeowners, investors and first-home buyers have been through a rollercoaster of rate rises, inflation shocks and increasing living costs.

For many people, confidence isn't built from what they're told. It's built from what they've experienced.

What's interesting is what we're seeing on the ground. Despite all the economic noise, we've sold three properties this month.

The buyers weren't rushing in because of newspaper headlines. They were making practical decisions based on lifestyle, convenience and long-term value.

Two of the three buyers had been actively looking for quite some time. They weren't impulse buyers. They had done their homework, watched the market and waited until they found the right opportunity.

One transaction in particular highlights how important it is to think outside the square.

The buyer was looking at purchasing an apartment, but there was one obvious challenge. He already owned a property. Rather than seeing that as an obstacle, we presented a solution.

"Buy this apartment and we'll sell your current property."

It was a simple conversation but one that changed everything.

When we looked at his circumstances, it became clear that living in Mosman Park made far more sense than remaining in Victoria Park. His work is in Mosman Park, meaning less commuting, more convenience and a better overall lifestyle.

Once he saw the bigger picture, the decision became easy.

Boom. The deal was done.

Now we're preparing for the first home open on his existing property.

It's a perfect example of how real estate isn't always about interest rates, market reports or economic forecasts. Sometimes it's about understanding a client's situation and helping them see opportunities they hadn't fully considered.

While lower rates are undoubtedly helping confidence, buyers are still being cautious. They want value. They want certainty. Most importantly, they want to know they're making the right decision for their future.

The market feels like it's gaining momentum, but it's not a frenzy. It's a market being driven by informed buyers making considered decisions.

As agents, we're often in a unique position to hear what people are really thinking. And right now, the overwhelming feeling isn't excitement.

It's cautious confidence.

People are prepared to act when the numbers make sense and the property is right. They're just not willing to blindly trust every prediction being thrown around by economists, politicians and commentators.

Perhaps that's the biggest lesson of all.

Interest rates may have fallen, but buyers are relying on their own judgement more than ever.

And honestly, after everything we've been through in recent years, can you blame them?

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!

FEELING THE PAIN LET ME KNOW

 I'd love to hear from other Perth residents. Are your utility bills increasing? How much are you spending on a weekly grocery shop? Do you believe the Government understands the financial pressures facing ordinary Australians?

Sometimes the official statistics don't tell the whole story. The real story is being lived every day by families standing at supermarket checkouts, opening power and gas bills, and wondering how much further their budgets can stretch.

If enough people speak up and share their experiences, perhaps those making decisions in Canberra will gain a better understanding of the reality facing Australian households.

Because from where many of us are sitting, the numbers may look acceptable on paper, but life is becoming increasingly difficult in practice.

That closing invites reader engagement, which is excellent for a blog because it encourages comments, shares and discussion.

I think this article would resonate strongly with people in Perth, particularly homeowners, retirees and families who have experienced the combined impact of higher utility costs, insurance premiums, council rates, fuel prices and grocery bills over the past few years. It comes across as genuine rather than political, which is often more effective.

gill@viviansrealestate.com.au

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!! 

ARE THEY FOR REAL? THE COST OF LIVING CRISIS IS HITTING EVERYDAY AUSTRALIANS HARD

Like many Australians, I'm finding it increasingly difficult to understand how our government can continue telling us the economy is tracking well when so many people are struggling just to make ends meet.

Everywhere I turn, people are feeling the pressure. Families are cutting back on essentials, retirees are watching every dollar, and young people are wondering if they'll ever be able to afford a home. The reality on the ground feels very different from the polished economic updates we hear coming out of Canberra.

I recently had a personal experience that left me scratching my head. My gas bills from Alinta Gas are usually in the mid-$400 range, which is already substantial. Then the latest bill arrived and it had jumped into the low $500s. That was enough to prompt a phone call.

After questioning the bill, I decided to do a bit of informal research. I rang several friends and acquaintances and asked what they were paying. The highest bill among those I spoke to was around $145. Naturally, this raised a few questions. Am I using significantly more gas than everyone else, or is there something else going on? Either way, when a utility bill arrives that causes shock rather than routine acceptance, something isn't right.

The experience highlighted a bigger issue. Australians are becoming exhausted by constantly having to challenge bills, compare prices, hunt for specials and scrutinise every expense. It feels like we're spending more time trying to protect ourselves from rising costs than planning for the future.

The supermarket is no better. Most households have noticed food prices steadily climbing over the past few years. It's now common to walk into a supermarket for "just a few things" and leave with one small bag that somehow costs more than $150. The checkout total seems to rise much faster than the amount of food we're actually taking home.

Staple items that families rely on every week remain stubbornly expensive. Bread, milk, eggs, meat, fruit and vegetables all seem to command a premium that wasn't there a few years ago. While inflation figures may suggest price rises are moderating, many consumers are asking a simple question: if inflation is coming down, why aren't prices?

What concerns me most is that ordinary Australians appear to be carrying the burden. Small business owners are battling increased operating costs, homeowners are facing higher mortgage repayments, renters are seeing record rent increases, and pensioners are being forced to make difficult choices between comfort and affordability.

The conversations I have with people every day reveal a common theme. They're not looking for handouts. They're not asking for luxuries. They simply want to work hard, pay their bills, put food on the table and have enough left over to enjoy life occasionally. Increasingly, that basic expectation feels out of reach.

Perhaps that's why there is a growing disconnect between political messaging and public sentiment. Governments can point to statistics, forecasts and economic indicators, but people tend to judge the economy by what they see in their own bank accounts. If households are struggling to pay utilities, fill shopping trolleys and cover everyday expenses, then many will understandably question whether policymakers truly understand the reality being experienced by average Australians.

Australians are resilient. We've weathered challenges before and we'll do it again. But there is a limit to how much pressure households can absorb before frustration turns into anger. Right now, I suspect many people are asking the same question:

Are they for real?

Because from where many of us are standing, the cost of living crisis isn't easing. It's becoming the defining issue of everyday life.

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!  

What the Latest Interest Rate Rise Means for Perth Home Prices

The Reserve Bank's latest decision to increase the cash rate has once again sparked the same question from homeowners, investors and buyers alike: "Will property prices finally fall in Perth?"

My view is that while the latest rate rise will cool the market, it is unlikely to trigger the significant price corrections some commentators have been predicting. Perth's market fundamentals remain much stronger than many eastern states markets, and housing supply continues to be the biggest factor influencing prices.

The Reserve Bank lifted the cash rate by 0.25% to 4.60% in late September 2026, marking the fourth increase this year. Higher interest rates reduce borrowing capacity and increase mortgage repayments, which naturally places downward pressure on demand.

What We Can Expect in Perth

Over the past few years, Perth has experienced extraordinary growth driven by:

• Strong population growth
• A chronic shortage of housing supply
• Tight rental conditions
• Relative affordability compared with Sydney and Melbourne

Despite rising rates, these drivers have not disappeared. Industry data continues to show Perth remains one of Australia's strongest housing markets, although growth has slowed considerably from the rapid pace experienced earlier in the cycle. Listings have increased significantly, giving buyers more choice and reducing the intensity of competition. 

Will Prices Fall?

I believe the most likely outcome is not a steep decline but a period of stabilisation.

Higher borrowing costs will certainly push some buyers to the sidelines. Investors will also be more cautious as finance becomes more expensive. However, rate rises do not create new homes, and Perth's supply shortage remains unresolved. Several market commentators continue to identify limited housing stock, labour shortages and high construction costs as ongoing challenges that support prices. 

For this reason, I expect:

• Premium suburbs to experience softer demand and longer selling periods.
• Entry-level homes to remain relatively resilient due to affordability pressures.
• Well-presented family homes in desirable locations to continue attracting strong interest.
• Overall price growth to slow substantially rather than reverse dramatically.

The Rental Market Remains Critical

One factor often overlooked is the rental market.

Perth continues to experience tight rental conditions, and many tenants are finding it difficult to secure accommodation. This encourages some renters to purchase where possible, while investors still see opportunities because rental demand remains strong. Median rents remain elevated across Perth, helping offset some of the increased holding costs resulting from higher interest rates. 

Opportunities for Buyers

Ironically, rising interest rates may create the best buying opportunities we've seen in some time.

As borrowing becomes more expensive:

• Buyers face less competition.
• Properties typically remain on the market for longer.
• Negotiating power begins shifting away from sellers.
• Subject-to-finance offers become more acceptable.

For buyers who have stable employment and secure finance, the market may become more balanced than it has been in recent years.

My Outlook for 2027

Looking ahead, I expect Perth property prices to enter a period of moderation rather than correction.

While I would not be surprised to see some suburbs record small declines, particularly where prices have risen fastest, I do not foresee a widespread downturn unless unemployment rises significantly or there is a substantial increase in housing supply.

The latest rate rise is likely to slow the pace of growth and bring more balance to the market, but Perth continues to benefit from strong underlying demand and limited housing stock. In my opinion, those factors will continue to provide a floor under prices.

The days of double-digit growth may be behind us for now, but Perth remains one of the most fundamentally sound property markets in Australia.

Disclaimer: The information contained in this article reflects my personal views and general market observations. It should not be considered financial or investment advice, and readers should seek independent professional advice before making property decisions.

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!  

HOUSING SHORTAGES WILL THAT PUSH PRICES HIGHER AGAIN

Westpac CEO Anthony Miller believes Australia's housing shortage will see property prices start rising again next year, despite recent falls.

His main message is simple: the biggest problem isn't demand, it's supply.

Miller says governments should focus on making it cheaper to build homes rather than offering incentives such as first home buyer grants. He believes subsidies for construction materials, roads, water, sewerage and other infrastructure could help bring housing costs down and improve affordability.

Westpac expects property prices to recover once the current downturn ends, forecasting growth of around 3% in 2027 and 8% in 2028. The reason is straightforward: demand for housing continues to exceed supply.

He also pointed out that many first home buyers are sitting on the sidelines waiting for prices to fall further, while investor activity has dropped sharply since the federal budget changes.

The reality is Australia simply isn't building enough homes. With the government's target of 1.2 million new homes already falling behind schedule, affordability challenges are unlikely to disappear anytime soon.

Key Takeaways

• Australia's housing shortage remains the biggest issue.
• Westpac expects property prices to start rising again next year.
• Supply, not demand, is the main challenge.
• Government support should focus on reducing building costs.
• Infrastructure costs can make up as much as 30% of a home's price.
• Australia is not on track to meet its housing construction targets.
• Housing affordability will remain a major challenge unless supply increases.

My take: Until more homes are built and construction costs come down, don't expect housing affordability to improve significantly. The supply shortage continues to be the key driver of the property market. Make the most of the lull in the market right now as it certainly wont last.

MAKE YOUR OWND DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!

RENT CAPS SOUND GOOD - BUT THEY WON'T FIX PERTH'S RENTAL CRISIS

There's no denying that rental affordability is a major issue in Western Australia. Rents have risen significantly in recent years, and many tenants are feeling the pressure.

As a property professional, I understand why rent caps are being discussed. On the surface, they seem like a simple solution. The reality, however, is that they don't address the real problem.

WA's rental crisis is fundamentally a supply issue. We simply do not have enough rental properties to meet demand.

Introducing rent caps doesn't create a single new rental home. It doesn't speed up approvals, release land, or encourage investors to build or buy rental properties. It only places restrictions on the existing stock in an already undersupplied market.

History shows us what can happen when rent controls are introduced. In cities around the world, including San Francisco, strict rent controls have been linked to a reduction in rental supply as landlords exit the market. Other heavily regulated rental markets continue to struggle with long waiting lists and housing shortages.

This is not about removing protections for tenants. Renters deserve fairness, security, and clear tenancy laws. Strong protections and a healthy rental market should go hand in hand.

The challenge is that most rental properties in WA are provided by everyday investors who choose to make their property available for rent. If enough owners decide the investment no longer stacks up, they can sell, reducing the number of rental homes available.

Every property that leaves the rental market makes it harder for tenants looking for a home.

The answer isn't to discourage investment. It's to encourage more of it while maintaining sensible protections for renters.

At the end of the day, if we want more rental properties, we need more people willing to invest in providing them.

Rent caps may sound appealing, but they risk making an already difficult situation even worse.

If this Government keeps pushing the investors there will be a lot more for sale coming up, I cannot see the rent's stopping in the next 3-6 months.

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!

PERTH SPRING PROPERTY MARKET SET FOR A SLOWER START

The traditional spring selling rush may be much quieter this year, and Perth is beginning to feel the impact of changing market conditions.

Across Australia, new property listings have fallen sharply, sitting 8.2% below the five-year average and 2% lower than this time last year. While Perth has been one of the country's strongest performers over recent years, the slowdown in buyer demand is starting to influence seller behaviour.

Many Perth homeowners are becoming more cautious about bringing their properties to market. With home values softening, sales activity declining and buyers taking longer to make decisions, some vendors appear to be waiting for stronger conditions before listing.

The interesting trend is that while fewer new properties are coming onto the market, the total number of homes available for sale continues to rise. This tells us buyers are taking more time to commit, creating more competition among sellers and giving purchasers greater negotiating power.

Nationally, Sydney, Melbourne and Brisbane are leading the slowdown in new listings, but Perth is also experiencing weaker transaction activity compared to a year ago. The days of multiple buyers competing aggressively for every listing are becoming less common, creating a more balanced market.

For Perth buyers, this could be welcome news. More choice, less competition and increased negotiating power are creating opportunities that haven't been available for some time. For sellers, however, realistic pricing and strong presentation will be more important than ever.

As we move through spring, Perth is still likely to outperform many eastern states, but the market appears to be transitioning from the rapid growth phase of recent years into a more measured and balanced environment.

We have noticed that the amount of appraisals we have been doing for the last month have dropped of considerably so therefor there will not be many listings coming to the market in spring time - sellers are definitely thinking to hang in there and make the extra cash, however they are trading up so it would be better to sell NOW !! 

If you are a buyer and you see something that you like, do not hesitate BUY IT !!

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!