We’re seeing a lot of activity in the market at the moment. This is in stark contrast to 12 months ago. Buyers then were few and far between. And as a result, property took a long time to sell…and house prices fell accordingly…in some cases as much as 30-40% from the extreme levels that were reached in 2006 and 2007.
Over the past six months, momentum has been returning to the market. Initially, we felt it in the lower end where properties priced below $500,000 were being snapped up like hotcakes. Several months after that, we noticed it in the next tier of property, the $500,000-$800,000 range which in-turn generated interest in the next tier, the $800,000-$1,200,000 range – entry level into a lot of the western suburbs.
To give you an idea of these trends, we recently sold 5 properties in the space of a week. One had two offers the day after it went to market. The other sold after one home open. What’s more our experience seems to be supported by other agencies across the westerns suburbs. It seems no matter who you talk to, they’ve noticed there’s a “change in the air”...the buyers are coming back.
So are we back to the halcyon days of a couple of years ago when people were too scared to sell their homes before buying in case they lost out in the change-over period?
Not quite. The prices for property prices achieved for property during that period are still, in most instances, yet to be reached again. What we can report is that prices are on the way back – perhaps 10-15% - and at this stage, continuing to move upward.
Whether that trend continues is anyone’s guess. However, given the recent announcement by the State Government that they have secured the Gorgon deal – a project that should create an economic buffer for WA for the next 20 years – there is good reason to be optimistic that the recent positive activity in the real estate market in the western suburbs will continue.
David Fear