REIWA's latest prediction of a 15 per cent increase in WA's property prices is "conservative" according to Acton Mandurah's director Graeme Baxter.
In November 2020 REIWA forecast prices in WA would increase as much as 10 per cent in 2021, however it now says, based on what's been observed in the first quarter of 2021, it anticipates growth of 15 per cent by the end of the year.
REIWA president Damian Collins said there were many factors at play, including WA still being the most affordable state when comparing income to median house prices. He also indicated there's an imbalance in supply and demand right now, with more buyers looking for property than there are houses for sale.
This is supported by the lower number of current house listings in Mandurah compared to last April.
"This time last year there were between 1,500 and 1,700 properties on the market, and right now there are only 805 active listings," Mr Baxter said. "We're seeing a lot of multiple offer situations, with buyers paying over the asking price to secure a property. I predict it [property prices] will go even higher than 15 per cent."
Mr Baxter also said sales were increasing across the board, not only with first home buyers and the high-end market, but with investors as well.
"We've seen the return of the investor into the market, now there's such a strong demand for rentals. With increased rental asking prices, low interest rates and low stock levels investors are able to shift focus from negative to positive gearing. It doesn't happen often. There's a very healthy outlook," he enthused.
But when asked his thoughts on how long these conditions would last Mr Baxter was hesitant to make a prediction.
"At this stage I don't think anyone would like to predict the future, but I think this trend will continue to be strong for some time to come," he said.
Harcourts Mandurah director, Ben Hatch suggested the strong market would continue at least until "things get back to a bit more normality, like having our international borders re-open".
"But that could be a year or two away," he said.
The rate at which properties are selling points to the current buyer confidence and levels of demand.
"We're running quick campaigns of only seven to 14 days before houses are being snapped up," Mr Hatch said. "I think it's the lowest time on the market we've seen for quite awhile. Another major contributing factor is the timeframe for building getting longer, so people are preferring to buy established. Mining jobs are also closely linked to our housing prices and we've got plenty of those at the moment."
