- 15% is the new house price growth prediction for 2021
- Initially tipped to rise 10% this year, REIWA has revised their prediction
- The change in forecast comes as the year started out unexpectedly strong
Western Australian property prices are predicted to grow by 15% this year, based on REIWA’s revised forecast.
Prices have grown 5% in the first three months of 2021, according to CoreLogic’s Perth home value index.
REIWA President Damian Collins said this strong growth has prompted REIWA to revise upwards its previous 10% growth projection for 2021.
“There are a number of factors contributing to the strong price growth we have seen and expect to continue to see this year.
“WA is still the most affordable state in the country when comparing income to median house prices.”
Damian Collins, REIWA President
Despite the continuous increases, Mr Collins said Perth’s current median house sale price of $495,000 was still down from the peak of $550,000 in 2014.
“We hit the bottom of the market around June last year following the COVID-19 lockdown and since then consumer confidence has returned. Buyers who were waiting for the bottom to hit are now eager to get into the market and take advantage of the record low interest rates.
“Western Australia is experiencing a stark imbalance between lack of supply and high demand in the property sales market at the moment.
“Buyers must act quickly and in competition with one another to secure a property, which is driving up house prices.
Damian Collins, REIWA President
“When you factor all these components in, it is a perfect storm for higher-than-expected house price growth this year. We need to get more homes and apartments built. Until we see supply catch up with demand, we will see prices continue to rise,” Mr Collins said.
