regaining confidence in the market

For many, the 2010 / 2011 financial year has been a turbulent one for various reasons.

Natural disasters, political uncertainty and a volatile economy have all contributed to the current trends we are seeing in the property market and consumer sentiment in general.

During times of uncertainty the psyche in people changes; some people feel wary about making changes in their life such as buying or selling property, while others reassess their lives and take a ‘live in the moment’ approach.

In the WA market, uncertainty and subsequent action deferral is more accentuated because Perth enjoyed a major and prolonged boost in the market ahead of other Australian markets throughout 2005 and 2006. However, this was followed by a dramatic slide in property values.

Nevertheless, we are now aligned with other capital city markets and analysis of historic trends suggests we are approaching the bottom of the curve and can look forward to a more stable and positive market. It’s important that we look beyond the immediate moment and see the medium term potential of the market.

Perth has already seen some correction in the market; and although it will be a slow and steady return to a more energised market it’s a positive sign for WA and feelings of uncertainty regarding property will begin to subside as people gain confidence in the market fundamentals.

While we endure this sluggish market, it’s important to have confidence that it will find its own equilibrium consistent with the demand and supply. It is also a time to seriously consider opportunities provided by the market now and take advantage of strategic buying ahead of the crowd.