According to the figures the median house price in Greater Bunbury increased by $20,000, or six per cent, to $365,000 in the June quarter.

The recovery was welcomed by the real estate industry.

Bunbury REIWA spokeswoman Roslyn Ierace said the figures matched what she was seeing on the ground.

“I thought we would see some increases particularly led by the first homebuyers,” she said.

“We are well on the way to recovering the losses we have seen over the last 12 months.”

Ms Ierace said there were strong sales in the lower end of the market.

“We are in the situation where we are now experiencing a shortage of quality stock below the $330,000 mark,” she said.

However the higher end of the market was still struggling.

“Sales in the $500,000 mark have still been very slow,” Ms Ierace said.

There were also concerns that the end of the Federal Government’s home owner’s grant boost due in September could stall current growth, particularly if unemployment continued to rise.

“It will be a questioning period of time,” Ms Ierace said.

There were other positive signs such as the current level of stock in Greater Bunbury.

The number of houses on the market across Greater Bunbury has reduced to almost half the level of this time last year.

“We are looking at between 1000 to 1200 homes on the market at the moment,” Ms Ierace said.

“Supply and demand is tightening.”

Ms Ierace had this advice for people thinking about selling.

“They should consider putting their house on the market now,” she said.