Kate Bastians, The West AustralianUpdated April 21, 2012, 2:20 am
Confident first-home buyers drive sales revival
First-homeowners are driving a recovery in the WA housing market, with new figures showing sales have reached their highest level in two years.
Preliminary figures released by the Real Estate Institute of WA showed sales in the March quarter were expected to reach 7450, the highest level since March 2010.
REIWA president David Airey said first-homebuyers were leading the revival in the market, with grants paid for existing houses surging to 2933 in the March quarter.
There had been a steady increase in the number of grants made since a low point in September 2010 when just 2016 payments were made.
Popular areas for first-homebuyers were Clarkson, Baldivis, Butler, Piara Waters and Ellenbrook.
RE/MAX Excel real estate agent Lorraine Dove said she had sold several properties in Baldivis in the past three months.
"It's been exceptionally busy in the last quarter," Ms Dove said.
"There is renewed confidence in the market as a lot of buyers have realised property prices have plateaued."
She said many families had been put off renting in Baldivis because the high demand had pushed up prices.
"If it is going to cost the same amount for them to rent as it would to buy, then they are going to go for the mortgage instead," Ms Dove said.
Angie Hutchinson was waiting for her settlement to be approved for a house in Harperia Way, Baldivis.
"We didn't think house prices would go down any further and we were worried they would start going up, so that was one of the factors behind entering the market," she said.
"Baldivis seems like a nice family area and is also affordable."
Mr Airey said upgrade buyers who tended to buy more expensive properties were also providing a much-needed boost to the market.
"The strong activity from first- homebuyers has been a tonic to the market and we can see from current figures that as a result of this activity, trade-up purchases also improved during the March quarter for many properties above the current median of $465,000," Mr Airey said. He said applications for first-home grants for new dwellings had risen for a second quarter as the influence of house and land package marketing campaigns flowed through.
