Strong demand for sub $700,000 properties has seen prices trending upwards over recent months reducing the gap between this segment of the market and million plus properties however this window is certain to slowly close as upgraders repurchase according to RE/MAX WA managing director, Geoff Baldwin.
“The recent resurgence in the market is mainly focussed on the lower priced properties however many of these homeowners are now selling to upgrade and are cashing in on the fact that million plus properties have not yet increased substantially in price.
“Prospective upgraders who are holding out for more money on their current home stand to cost themselves many thousands of dollars as the gap begins to widen.
“As an example, to hold out for another $10,000 or $20,000 on a $600,000 property can be a big mistake if the intended million dollar upgrade purchase increases by $50,000 which can happen very quickly in a market with reducing stock levels and high demand.
“Now is a wonderful time for people to upgrade but this window of opportunity will only remain open for a limited time before price pressures move up the chain”, Mr Baldwin said.