Clear signs of revival in the property market
04-Nov-2010
Partially driven by first home buyers the housing sector of the economy is showing some signs of a revival in buyer demand.
Real estate agents in most parts of the Metro Area, including the Western Suburbs,are reporting increased buyer interest and improved attendances at home opens. And increasingly we are seeing Sold or Under Offer stickers appearing on For Sale signs. About a quarter of home loans are being taken up by first home buyers and the Housing Industry Association (HIA) has reported an encouraging increase in sales of newly built homes.The HIA's Senior Economist, Ben Phillips,said that for the month of January total loans increased by 3.5 per cent on December last year. Loans for construction rose by 2.5%. In seasonally adjusted terms the number of loans for existing and new dwellings increased by 4.2 per cent in Western Australia. There would appear to be little doubt that behind the modest but meaningful spike in property sales is the improved affordability of property.