Western Australia is now in a period of unprecedented economic growth. When the market rises, prices and interest rates will rise along with them. Those who act before the market rises will find themselves in a stronger position than those who wait.
Rockingham, Western Australia (PRWEB) August 09, 2012
Largely on the strength of the mining industry, the WA economy is continuing to outperform the rest of the nation. Commonwealth Securities’ (CommSec) latest State of the States report found that WA economy now leads Australia in six of the eight most important indicators: economic growth, employment, retail spending, population growth, completed construction work, and equipment investment. WA finished fifth in dwelling starts and third in housing finance.
In a recent interview, Chief CommSec Economist and author of the State of the States report Craig James, declared WA to be in its own class compared to the rest of Australia: “Perhaps what you need to do is strip out the Western Australia performance…Western Australia clearly is an outlier.” In another interview, James said, “Western Australia is clearly Australia’s best-performing economy.”
According to leading US publication The Wall Street Journal, 46 percent of Australia’s exports in 2011 came from WA. For that time period, WA’s gross state product was approximately $193 billion, or 14.6 percent of Australia’s gross domestic product (GDP). According to the Department of Education, Employment, and Workplace Relations, unemployment in WA is approximately 3.8 percent, which is the lowest in the country.
In an economy in which other economic factors are so strong, the housing usually follows the trend. An influx of commerce and the people to transact it increases demand for housing, which results in a decreased supply. Simple laws of economics dictate that as the demand rises and the supply falls, prices rise.
According to the latest statistics available from the Real Estate Institute of WA (REIWA), the median price for a house in Perth, $469,000, is still $36,000 lower than it was in 2010, which can work out to as much as $100,000 over the length of a standard mortgage. When all market factors are taken into consideration, most analysts will agree that housing prices will continue to make their way back toward their peak in 2010, and could eventually surpass the 2010 prices.
According to Justin Smith, Principal of The Mortgage Gallery Rockingham, “Western Australia is now in a period of unprecedented economic growth. We are now seeing indications that housing is beginning to follow the rest of the economy. When the market rises, prices and interest rates will rise along with them. Those who act before the market rises will find themselves in a stronger position than those who wait.”
The Mortgage Gallery Rockingham has responded to the current economy with a proactive approach. Their Rockingham mortgage brokers are industry leaders in providing access to home loans from a strong group of financial and lending institutions, who then empower prospective home owners to purchase properties that fit within their budgets in Perth, Rockingham, Cockburn, Kwinana, and surrounding areas.
The Mortgage Gallery Rockingham has served Rockingham and the surrounding areas since 2003. Their friendly, courteous, and professional mortgage brokers will be happy to provide a telephone consultation at (08) 9527 1800. The Mortgage Gallery Rockingham also invites you to visit their website at http://www.themortgagegalleryrockingham.com.au/.