Optimism in housing market

Date: 18 September 2013
Springtime means horse racing, wildflowers and a break from the cold weather in Kalgoorlie-Boulder but the local real estate market is also very excited for what the new season will bring.

The winter months are traditionally very quiet in the city for real estate activity, which has been reflected in the June quarter data from the Real Estate Institute of Western Australia.

Kalgoorlie-Boulder only has two suburbs in the top 10 for the largest median house price growth in the past year.

Somerville and South Kalgoorlie were the lone representatives from the city on the list, a drop from the March quarter, when four suburbs made the cut.

Kalgoorlie First National partner Norm Sharp said the drop in numbers was typical for this time of year.

“The June quarter is always pretty quiet so this was nothing out of the ordinary in that regard,” Mr Sharp said.

“It’s normally due to a number of reasons. Tax returns are being filed and the financial year ending, so people are pretty tight with their money but as it goes into the spring season the market picks up again.

“I’m ever the optimist so I’m very excited about the coming months, especially in regards to the delay in the changes to the first homeowners’ grant.”

The State Government announced changes to the grant in the 2013-14 budget and was, in part, aimed at stimulating the economy.

T he changes mean the $7000 grant will increase the $7000 grant will increase to $10,000 for those who are building a new home and drop to $3000 for buyers who are buying an existing dwelling.

The Government had hoped at implementing the changes on September 15 but having failed to pass the necessary bill, it won’t take effect until mid-way through October.

REIWA chief executive David Airey said this was good news for the 70 per cent of first home buyers who preferred to purchase existing homes rather than building new.

“The current delay in the change means first home buyers looking for an established property have a few more weeks to access the higher grant,” Mr Airey said.

“On the flip side those who want to buy a block and build will be likely to hold back until the grant lifts to $10,000.

“This delay has turned into a bit of a win-win situation for first home buyers who are looking to enter the market in the immediate future.”

Mr Sharp agreed with Mr Airey and said the delay would give a little push to those who were apprehensive about entering the market.

“When the budget was announced I was surprised about how quickly the Government planned on implementing this change and I think home buyers were as well,” he said.

“Now that there will be a little extra time for them to get organised, there might be a flurry in the market I think many of us were hoping for.”

The June quarter is always pretty quiet.

First National Real Estate Kalgoorlie

Source: Kalgoorlie Miner, 18 Sep 2013
Back to articles Filed under: Media / WA News Tags: first home buyer, first national real estate kalgoorlie, kalgoorlie, norm sharp, property market
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