House prices tipped to rise by $10,000

PERTH median house prices could rise by nearly $10,000 to $160,000 within the next couple of months according to Geoff Baldwin Team managing director Geoff Baldwin.

He said the $7,000 GST compensation package after 1 July could “result in an avalanche of buying activity” and a significant rise in prices.

“First home buyers account for around 20 per cent of the total home market and they have been virtually absent from the Perth real estate market during the last nine months.

“There is a major pent-up demand in the first home buyer market because these buyers have held back.

“From 1 July, many first home buyers will want to buy a home immediately and this will create a shortage of properties in the lower end of the market driving up home values.

“For people who do not qualify for the $7,000 grant they should consider buying a home in the next month if they are in a position to do so.

“Second home buyers should make an offer prior to 1 July to avoid being in a worse position as they compete with first home buyer demand and rising prices,” he said.