2008 was a tough year in real estate. In those last few months it appeared there was little to expect but an almighty crash. In some instances property values took a sharp dive. Stories of people slashing prices to achieve a quick sale were rife. Few were willing to predict even a flat market.

But how times have changed. Less than 18 months later the market has once again surged.

It’s back in the black with plenty predicting more good news to come.

Compared to the rest of Australia – and despite a massive resources boom – WA is an under-performer. That’s if you can call an annual growth of 14.3% under-performing. Some expect the combination of higher interest rates and lower first home buyer grants to slow the market.

But others are more upbeat pointing to strong population growth and improving employment prospects as potential market drivers.

What are are your thoughts? Which way is the Western Australian property market heading in 2010?