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WA ECONOMY SHOWS SIGNS OF RECOVERY



ANZ economists have boosted the confidence of small business and homeowners in WA by suggesting the economy has started to show signs of growth.

With March growth figures trending up and SEEK reporting higher volumes of job advertisements, the outlook is positive for wage growth, employment, spending and house prices.

Justin Smith, Principle of Smartline Rockingham Mortgage Brokers commented that homeowners have a lot to look forward to over the coming 6 months.

“We are predicting strong house price growth for the second half of 2017. What this means is that families will be able to unlock additional equity in their home to purchase investment properties or to even support their children with a deposit for their first home,” Smith said.

CommSec figures show a 0.9% increase in general spending, meaning confidence is being restored in the state economy.

Wage growth and additional jobs is also a source of good news for property sellers. Higher buying budgets mean higher house prices – something the WA market has been lacking.

Smith said, “For those looking to upgrade their home or to downsize, we think now is the right time to be starting those conversations. As the market starts to grow, it’s important that people looking to move capitalise on those lower prices in their next purchase.”

While it could be some months before we see dramatic rises in capital growth, investors may be attracted back to the WA market as they try to snap up the last remaining bargains.