RE/MAX, the world’s highest selling real estate brand, has reported US property prices were 11.5 percent higher in November 2013 compared to the same month in 2012, the best performance in 5 years and heralding the likelihood of boom conditions in Australia within the next 18 months according to RE/MAX Western Australia MD and 27 year industry veteran, Geoff Baldwin.
“Despite the predictions of a myriad of commentators over the past few years, that the US market was doomed to decades of struggle, the past twelve months saw property price rises in almost every US state with California and Nevada increasing in excess of 21 percent year to year” he said.
“This positivity in the market has come despite continuing tough rules around lending plus a very slow recovery across the rest of the US economy.
“US prices are predicted to continue rising into 2014 and beyond.
“The Australian real estate market has for decades been a mirror of the US market and, despite the fact that stricter lending ensured we did not experience the same pain as the US, renewed confidence their will almost certainly reflect positively in Australia.
“Most states in Australia are either experiencing increasingly strong activity in the property markets or are certainly well into recovery mode, interest rates remain at record lows, employment, apart from the manufacturing sector, remains strong, immigration and foreign investment in real estate are at record levels and confidence is relatively high across the board, all pointing to a perfect storm environment and a possible boom.
“Informed observers in the US are predicting that market to boom again within 3 years and when you compare our local economic conditions it is hard to argue that we are better placed.
“The only possible restraining factor is that Australian property prices in our major centres are arguably too high to allow them to skyrocket however, this same argument was put forward before all recent booms in this country.
“The bottom line is that Australians, investors and/or owner occupiers, who are holding off would be well advised to take action now rather than to wait and see”, Mr Baldwin said.