Despite record property prices we’re still not in a boom says REIWA President, Alan Bourke. Speaking to Perth Now, Mr Bourke claimed that the current surge in property prices is part of “…an enormous…correction that has to happen…in order to get back to the 2007 prices.”
REIWA’s preliminary data for the December quarter shows median house prices up 14.3 per cent from December 08 to $480,000.
Mr Bourke attributed strong property growth to a change in the market from first-home buyers to trade-up buyers.
“2009, as a result of the First Home Owner Boost, saw 42 per cent of all sales being first-home buyers and of course they buy in the under $500,000 market so the median price moved down.
“As they’ve slowly left the market and the next wave of buyers, the trade up buyers, have moved in, buying in the segment between $600,000 and $1 million, the median price has moved up to reflect that they are now the most predominant buyer in the market.
“2010 is going to be the year of the trade-up buyer.”
Mr Bourke claimed that one of the key drivers of price growth has been the ongoing shortage of land, which increases demand for existing accommodation.
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