If you’ve been keeping an eye on the Perth housing market figures of late, you’ll have noticed that the market is not skewed in the seller’s favour. Property prices have peaked, and experts are predicting that the downturn will last through 2016.
REIWA President Hayden Groves recently said that Perth’s moderating housing market presented fantastic opportunities for buyers keen for a bargain. With the median house price falling 4.2 per cent in the September quarter to $522,133 and units and apartments falling 2.3 per cent to $420,125, there are plenty of opportunities for investors to take advantage of the weaker market.
Domain senior economist Andrew Wilson also commented, saying that the Perth market is heading towards the bottom of the price cycle and that it will start to adjust over the next 12 months. A falling Australian dollar, cuts to interest rates, increasing unemployment figures and the departure of the mobile workforce from the resource sector are contributing to the downturn. Dr Wilson also agreed that the market is right for investors, first-home buyers and those buyers looking to upgrade.
Here’s what we know – facts and figures:
- During the September quarter, stock listings for sale hovered around 15,100.
- This figure increased in October with more than 16,000 properties on the market – a level not seen since immediately post–Global Finance Crisis.
- Total dwelling sales fell in the September quarter to 8600 – below the average and fewer than the June quarter.
- The average number of selling days for the Perth metro region is at 62 days, up 5 from the June quarter.
- In the September quarter 53 per cent of vendors needed to discount their asking price to sell.
“We’ve had several owners put their property on the market when a tenant vacates only to come back months later asking for it to be relet again,” says Rentwest Solutions General Manager, Michelle Rigg. “We appreciate rents have dropped, but properties are renting and property will increase in the future. With the current interest rates re-financing is a real option. Our partner, Custom Financial Solutions, are happy to give owners some free advice.”
Are you considering selling your property? We urge you to speak to our property management team before you make a decision. Contact them via email or call 9314 9888.