Published on March 27th, 2013
Improving mood ‘affecting real estate’
Across Australia consumer sentiment is improving, resulting in an improving real estate marketplace.
Residex chief executive John Edwards explained that the market is enjoying the momentum of an improving economic climate.
He said: "Things in the financial world and the Australian housing market are looking fine and I am pleased to be delivering a positive newsletter."
Mr Edwards cited the Westpac-Melbourne Institute Index of Consumer Sentiment, which found an improving mood among consumers – translating into better transaction rates and rising property prices.
Property Observer explained that Western Australia's regional areas saw a rise in median real estate values in addition to a one per cent rise in Perth's values.
February saw a 0.96 per cent rise for February, which followed a 0.61 per cent rise for the quarter.
The growth in the Perth property market, which has led to a decline in listings, stems from a number of factors, according to the Real Estate Institute of Western Australia (REIWA).
"The diminishing level of listings in metropolitan Perth in the wake of strong population growth and improving consumer confidence will create upward price pressure and increased demand for homes," it was explained.
The REIWA said that the healthy economy is becoming an attraction, with the population growing at a rate of 1,000 people per week, which is putting increased demand of real estate in Western Australia.
This is expected to have an impact on property prices as buyers look to compete for the few available properties.
However, vendors were warned that this is not a boom, but simply a reaction to increased demand, meaning that hesitant sellers could take advantage of the current climate.