According to analysts, these new figures showing the improved supply and demand ratio in the area is a testament as to how the industry has definitely recovered.
Rockingham, Western Australia (PRWEB) August 03, 2012
Property analysts have confirmed that the real estate bust in Western Australia, has finally reached its end after 5 gruelling years.
Recent data from the Real Estate Institute of WA (REIWA) shows that the housing stock in the region, particularly Perth, has significantly decreased from 18,000 to 11,973 over a one year period. This is also the first time that supply availability has fallen below the 12,000 mark, for the last 5 years.
This improvement is a huge welcome change for the real estate industry, considering that over the course of 5 years, the global financial crisis and other factors have caused the property market to suffer greatly.
According to analysts, these new figures showing the improved supply and demand ratio in the area is a testament as to how the industry has definitely recovered. They believe that factors such as the high cost of rent, rising population growth, and low interest rates have greatly contributed to the revival of the property market.
Presently, the median house price in Perth is $469,000, which is relatively lower to the average price 2 years ago - $505,000. WA Premier Colin Barnett, expressed that this positive change in the industry likewise shows the growing confidence of people in the state’s economy and future.
Barnett said, “This is amply demonstrated by the Westpac-Melbourne Institute survey of consumer confidence in WA which rebounded sharply in June 2012, in contrast to a small rise at the national level."
David Airey, REIWA president, in explaining the situation of Perth’s property market, added that the real estate industry bounce back has been further reinforced by the strong WA economy.
Airey said, “We hit 18,500 listings in April 2010 and it's slowly wound its way down from that, which indicates properties have been sold or withdrawn.”
"We've got rid of all the over-priced, long-listed properties and we're into the start of what could be a new and more buoyant market," he added.
On the other hand, Gavin Hegney, a renowned property analyst, forecasted that Perth will most likely outperform other cities in the real estate scene, as the demand for its property market steadily improves.
Hegney explained that many prospective buyers, particularly those who are first-time home buyers, will make their purchases because of the high cost of rentals.
He said, "The rent relative to the cost of buying is close so they think 'If I have to pay that in rent, I may as well buy’.”
In May, more than 1400 Australians received First Home Owner Grants, reaching the highest number of new buyers for the last 2 years. From January to June this year, the state recorded a 4.1% increase in property sales in comparison to the same period in 2011.
In addition, WA has the highest population growth rate in the country with 2.9%, according to the Australian Bureau of Statistics.
Joe Lenzo, Property Council executive director for WA said, "Demand is picking up, but there's not a lot of product coming back into the market."
“We should be building more homes than we're building at the moment, no question. Otherwise the demand is going to outstrip the supply within a year."
In response to the positive developments in WA’s property scene, The Mortgage Gallery Rockingham is continually working with leading and reputable financial and lending institutions to help first-time home buyers find reasonable home loans in Cockburn, Perth, Kwinana, and Rockingham areas. This is primarily to help all home buyers make the most out of WA’s improving real estate industry and property market.
The Mortgage Gallery Rockingham is an established mortgage broking firm in Perth, in service since 2003. If you wish to speak to any of The Mortgage Gallery Rockingham’s professional mortgage brokers, they can be reached at phone number (08) 9527 1800. You can also view their website at http://www.themortgagegalleryrockingham.com.au/