It was the first property market bubble to burst, and now Western Australia may be the first to show significant recovery signs.
Perth's median house price has jumped by $10,000 since December last year, lifting the current median to $430,000, according to the Real Estate Institute of Western Australia (REIWA).
While the government incentives dished out to first homebuyers have inflated some lower end prices, REIWA President Rob Druitt says there was more to it than just the grants.
"While the federal government's First Homebuyer Boost has been a major reason behind this renewed activity, there is also evidence that trade-up buyers are returning to the market," he said.
Druitt says that while other states in Australia might be still stuck in a bit of a lull, it's important to remember Perth has been in its slump longer, and running on a different schedule the rest of the country's property market.
One of the most important indicators to be optimistic, he says, is the drop in stock level. From a height of 18,000 properties in Perth for sale in 2008, it's dropped to 15,000 in the March quarter, and then down to 14,300 in April. The long term average is 12,000.
"We're tracking in the right direction," he says. "It's narrowing the gap between buyers and sellers."
Druitt says the excess build up by speculators during the boom is likely to evaporate later this year, possibly triggering more construction.
But he added the winter season has traditionally been "very quiet" for the housing sector.