Western Australia finally sees property price growth
Western Australian property prices are expected to grow by 15 per cent this year, according to REIWA’s revised 2021 forecast.
REIWA President Damian Collins said the Institute was revising its 2021 forecast following the strong price growth experienced in the first three months of 2021.
“We hit the bottom of the market around June last year following the COVID-19 lockdown and since then consumer confidence has returned," Collins noted.
"Buyers who were waiting for the bottom to hit are now eager to get into the market and take advantage of the record low interest rates.
"There is also a fundamental imbalance between supply and demand in the sales market right now, with more buyers looking for property than there are houses listed for sale.
“When you factor all of these components in, it is a perfect storm for higher-than-expected house price growth this year," Collins said.
CoreLogic’s Perth home value index shows prices have grown five per cent in the first three months of 2021.
Last November 2020 REIWA forecast prices in WA would increase as much as 10 per cent in 2021, however based on the first quarter of 2021, Collins now anticipate growth of 15 per cent by the end of the year.
The current Perth median house sale price is $495,000, which is down from the peak of $550,000 in 2014.
