Typically, the less there is of something, the more valuable it is. It's basic supply and demand, where a smaller amount of a product in demand means buyers are willing to fork out that little bit extra to become its proud owner. Unfortunately, this also means the price of that very object tends to rise.
Fortunately for anyone thinking of buying real estate in Bunbury, Western Australia is one of the top states in the country when it comes to new home building, which could help ease the pressure when it comes to housing affordability. After all, the more supply there is, the less likely it will be that prices will skyrocket.
According to the Housing Industry Association's (HIA) bi-annual Housing Scorecard report, Western Australia ranks at number two when it comes to residential building, just under New South Wales. WA received a score of 81, just four points less than NSW's 85.
It's a slight drop for the state, which had previously sat at number one for a long time. Its fall to the second spot indicates that despite a mild decline, home building is still going strong in the Wildflower State – good news for anyone eyeing up real estate in Eaton, Australind and other nearby areas.
According to separate HIA figures, new dwelling commencements in WA fell a mere 4.8 per cent over the March 2015 quarter. This was markedly less than the the drops experienced by states like Tasmania or the ACT, which saw a more than 14 per cent decline. What this likely means is that after spending so long at the top, WA is finally seeing its home building activity temper somewhat, allowing the others to catch up.