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ISCOVER
Staff Reporter
The Western Australian property market should return to form in 2011, an industry stakeholder has claimed.
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RE/MAX WA managing director Geoff Baldwin said buyer activity had already started to increase since the beginning of spring, suggesting a prolonged recovery over the coming 12 months.
“Since the beginning of spring we have seen significant increases in buyer activity and this is starting to reflect in increased sales volume,” he said.
But while the property market is expected to hit its stride in 2012, Mr Baldwin said buyers looking to upgrade shouldn’t wait until the New Year to make their purchasing decision.
“When people see the market showing signs of improvement the temptation is to hold off and wait for more profits from your current home however this can be a big trap if you are considering upgrading,” he said.
“Put simply, while you are waiting for your current home to increase in value the one you are going to buy will almost certainly be doing the same however the gap will be widening.
“If your current home is currently worth say $500,000 and you are looking to buy a better house that is currently worth say $700,000 the gap is $200,000 today.
“However, if you wait for the market to increase 10 per cent you current home will go up to $550,000 but that better home will go up to $770,000 increasing the gap to $220,000 and costing you an extra $20,000.
“In a strengthening market the best advice for prospective upgraders is to take action sooner rather than later.”
