The WA property market is set to stabilise in the coming months, after enduring seven years of declining property prices according to National Australia Bank’s recent property survey.
National Australia Bank Group Chief Economist Alan Oster said the analysis showed that the WA property market is slowly improving.
“Sentiment is still negative in WA, but has improved appreciably from survey low levels reported in the last survey,” he said.
However, Raine & Horne Kelmscott Principal Director Will Trainor said he doesn’t expect to see any immediate growth.
“[The housing market] is a little bit flat at the moment, it’s subdued,” he said.
“I’d be optimistically cautious for the next six months, but [an increase] does look possible.”
The analysis suggests the fall in WA housing prices was caused by the end of the mining boom, when unemployment rates rose.
However, the WA economy is beginning to recover and with that the market is set to slowly re-stabilise.
Mr Trainor said young people looking to buy their first house shouldn’t be worried about a price increase yet, as there is still a lot of uncertainty in the market.
“If I was in the market looking for a house right now, I’d be most probably saving a bigger deposit,” he said.
“The market’s not going to do anything for the next six months.
“I think we need to see what the reserve is going to do in the next 12 months.”
The new analysis suggested Queensland would have the top performing property market in two years, with Melbourne and Sydney both slowly declining.
Mr Oster said the survey shows Australia’s property market is resilient, despite the recent tough economic climate.
“The latest results paint a picture of a very resilient market and came despite ongoing concerns about housing affordability, supply, the labour market, persistent warnings of a correction and speculation of more official measures to reign in lending to housing,” he said.
ABN Group director Dale Alcock also expressed optimism and encourages first homebuyers to take advantage of the record low interest rates.
Mr Alcock says the volumes are stable and believes the economic recovery cycle will come in soon.
“For young homebuyers particularly those are still sit at home with mom and dad, you know the first home owners, get on and do it,” Mr Alcock said.
“If you have a stable job and you are feeling confident, get on and do it because you will not get a better time than now and there is no downside. You know in two years time, you will sell the property and you won’t sell it for a loss, you will be in a recovery market.”