The month in review: South Western WA

By Herron Todd White
November, 2009

The residential market in the South West of WA appears to have steadied. Agents across the board are experiencing an increase in the number of transactions and the general interest in the market has moved from first home buyers to an increasing number of investors entering the market. There are increasing sales in the middle value range $600,000 to $900,000 and activity in the rural residential
market also appears to have increased.

Gone are the days where properties would need to be drastically discounted to achieve a sale, with values now considered to be more stable. Land values in the residential subdivisions appear to have bottomed and there continues to be activity in the construction of new
homes, the majority of which are now not first home buyers.

The high end properties are also seeing increased activity with several prestigious properties in Eagle Bay and Ocean front properties still selling for significant value ranging from $2,300,000 to $5,800,000. It is too early however to say if there has been any significant increase in values across the board.

The recent increase in interest rates and the talk of significant further rate increases to come is likely to put a hold on any likelihood of a quick recovery in terms of increased house prices. It will be interesting to see if this will have any negative affect on the number of
transactions.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270