12 April 2021
Western Australian property prices
are expected to grow by 15 per cent this year, according to REIWA’s revised
2021 forecast.
REIWA President Damian Collins said
the Institute was revising its 2021 forecast following the strong price growth
experienced in the first three months of 2021.
“CoreLogic’s Perth home value index
shows prices have grown five per cent in the first three months of 2021. In
November 2020 REIWA forecast prices in WA would increase as
much as 10 per cent in 2021, however based on what we have seen in the
first quarter of 2021, we now anticipate growth of 15 per cent by the end of
the year.
“There are a number of factors contributing to the strong price growth
we have seen and expect to continue to see this year. WA is still the most
affordable state in the country when comparing income to median house prices.
The current Perth median house sale price is $495,000, which is down from the
peak of $550,000 in 2014.
“We hit the bottom of the market around June last year following the
COVID-19 lockdown and since then consumer confidence has returned. Buyers who
were waiting for the bottom to hit are now eager to get into the market and
take advantage of the record low interest rates.
"There is also a fundamental imbalance between supply and demand in
the sales market right now, with more buyers looking for property than there
are houses listed for sale. Buyers must act quickly and in competition with one
another to secure a property, which is driving up house prices.
“When you factor all these components in, it is a perfect storm for higher-than-expected
house price growth this year. We need to get more homes and apartments built.
Until we see supply catch up with demand, we will see prices continue to rise,"
Mr Collins said.
View more Perth and WA market information.