Real estate veteran Geoff Baldwin of RE/MAX WA is confident the Western Australian property market will rebound in 2011 and urged buyers looking for the bottom of the market to act sooner rather than later.
According to Mr Baldwin property listings will decrease significantly as the year progresses, stimulating competition and reducing buyer choice.
“My career now spans four complete market cycles – 24 years – and this one is no different from previous cycles apart from the fact that this time around it is easier to pick the bottom.
“Unfortunately however, there are certain to be thousands of people who miss out on buying at today’s prices because they believe house prices will continue to remain low”, he said.
Mr Baldwin said prices had fallen gradually in WA for around three years resulting in a longer downward cycle than most, exacerbated by the prolonged boom years up to 2007 as well as the financial crisis. All signs are now present for an upswing, he said.
“Interest rates have begun to normalise, the WA population continues to grow at a record pace, buyer inquiry is up across all price ranges, rental vacancies are again tightening, rents are increasing, we are seeing more and more under offer stickers on for sale signs around the suburbs, investors are back in the market, the holiday season is finished and people are again focusing on their real estate aspirations.
“It is my strong advice for anyone contemplating buying a property to get into the market and take action in the short term rather than waiting, having less to choose from and ultimately paying a higher price.
“If you are selling to upgrade, do it now as, although you may sell for less than you will achieve next year, the price gap for your next home is certain to widen if you wait.”