Yeah, I think it's pretty clear the market in on a downhill spiral. Some suburbs are still performing well but as a whole, most areas are starting to hurt. We are in Perth and it's had a 7.5% slump in the past year. That's huge.

We are counting our blessings we sold our last house (which we built - walking distance to Fremantle - and had been in for only a year) at the tail end of the boom as our friends in the same area are struggling to sell their home. Just 2 years ago, they would have had people putting in ridiculous offers over the asking price BEFORE the home opens. Yes, it was that nuts over here. They've actually just taken their house off the market as it's been 5 months with only one offer and they need a break for a bit.

As you say, there would be pros and cons to selling now. You could definitely snap up a bargain in the near future BUT you also run the risk of selling your current house at a loss. It's such a gamble at the moment.

One of my close friends lives in Melbourne but her and her future hubby are going to move to the Gold Coast in a year or so. They've just bought a 4x2 with a pool close to the beach (5 minute walk) and only 10km north of Surfers. They paid $540K - $100K under the initial asking price. Admittedly it was a deceased estate but seriously, that seems crazy!

Perth definitely needed a shakeup in my opinion. It was so over inflated over here and while I'm grateful that it worked in our favour on several occassions, it has made it difficult for a lot of people and now the big slump is only making things worse. It will be nice to see the houses more afordable over here but it's sad that so many families, in particular, will be (or have already been) hit hard.