Tightening rental conditions and rising rents are having a positive effect on property sales, new research has revealed.
“The vacancy rate locally has dropped to around 2.8 percent down from over 4 per cent in January putting pressure on rents and prompting people to again seriously consider the buying option,” RE/MAX WA managing director Geoff Baldwin said.
“With property prices at a four year low and interest rates stabilised, people who have been renting are now weighing up the option to buy rather than to pay higher rents and be forced to choose from a decreasing rental pool.”
“A tightening rental market has been a strong indicator of improving sales conditions in every cycle over the past fifty years and this cycle is sure to be no different.”
Mr Baldwin said RE/MAX WA had seen its April sales volumes lift significantly.
“Most informed projectionists expect the market to strengthen throughout the rest of the year and into 2012 so prospective buyers are wise in acting sooner rather than later”, Mr Baldwin said.