By NICOLE VALICEK
BUYER confidence is on the rise, with experts tipping a year of property market stabilisation and growing interest in the west.
Director of Sweeney estate agents in Williamstown Dean Stanley predicts this year will see a return of stable house prices in the west.
“I think they’ll be slightly up on last year’s house prices – sale rates are up a little bit, prices are up marginally, we won’t see a great deal of movement, it’s not going to go backwards but the market will be very stable,” Mr Sweeney said.
Mr Sweeney said people were more confident in the market and with the current economy and as a direct result buyer confidence was higher than it had been in years.
“We’ve noticed a change – more people are out in open inspections and there’s been more inquiry,” he said.
Mr Sweeney said it would take three years for growth to return to the area after the price of houses dropped by 8 to 10 per cent in Williamstown at the end of 2010-’11.
“Once we see buyer confidence come back, Williamstown will be one of the first places to see capital growth.”
The Real Estate Institute of Victoria policy and public affairs manager, Robert Larocca agreed if consumer confidence continued to improve it should encourage more buyers into the market and in turn drive capital growth.
“As supply and demand is in much greater balance, any capital growth in 2013 will only be moderate,” Mr Larocca said.
Mr Larocca said the property market was in need of a strong and healthy economy but interest rate cuts alone couldn’t drive an improvement to the market.
However Mr Larocca said with interest rates at historical lows and affordability at a reasonable level this should attract buyers in 2013.
Managing director Adrian Butera of Compton Green Williamstown said the new market kicked off to a good start.
“At the end of last year through November/December we started to see more buyers as a direct result we started to see an increase in auction clearance rates,” Mr Butera said.
Mr Butera said in Williamstown buyers were looking for quality homes and predicted there would be a slight improvement in medium price in the inner west.
“I think it’s gonna be a good year, more turnover and that confidence in the marketplace is going to come through we’re all going to see it and that may filter through in slightly better prices.”
