Spring in step as market anticipation grows
THE Perth real estate market is about to enter one of its busiest periods with more homes set to come on to the market and buyers more active in the lead up to Christmas.
Residential asked several property experts for their thoughts on the state of the market.
The winter months are traditionally slower in the real estate market and this year has been no different.
In saying that, we have seen property prices remain fairly stable during this period, indicating that the decline we have seen over the past couple of years is slowing and even levelling out.
We anticipate that the warmer weather will bring out more buyers and create more activity.
The top end of the market is already starting to show signs of improvement, with the most expensive homes in Perth showing a 1.5 per cent increase in recent times.
At the opposite end of the market we are also starting to see increased inquiry from first-home buyers.
This section of the market is recognising that there has rarely been a better time to buy in the West.
As confidence slowly returns due to improving economic conditions, firsthome buyers are starting to take advantage.
Suburbs with a median house price under $500,000 are attractive. Some examples are Nollamara, Mandurah, Forrestfield and Merriwa.
We do not expect to see much of a rise in prices. Between now until December, we will more than likely experience more of the same.
Any increases will start to appear gradually from 2019 onwards.
Given the historically low interest rates, housing affordability and a positive outlook on the local economy due to expected increased mining activity and job growth, there is every possibility that we will see the market turn as we move towards the end of 2018.
We are already seeing increased demand from eastern states investors who recognise WA now offers superior growth opportunities to the east coast.
As the Sydney and Melbourne markets wind down, Perth is one of those markets property investors can turn to for not only affordable property, but prospects of growth moving forward.
The Peard Real Estate Group has found a strong improvement in property sales in the premium end of the market, especially homes priced above $1 million.
Upgraders understand that higher-priced homes are now selling for below replacement cost in many areas of Perth.
Similarly, first-home buyers understand that homes in coastal locations represent excellent value for money compared to building a new home further inland.
Perth’s northern suburbs are dominating the list of property ‘hotspots’ and I think we will see some strong figures to come from suburbs such as Doubleview, where strong demand and good value continue to drive sales growth in the area.
I think it is safe to say that when the price growth does return, it will be slow and steady, which is generally much better for a sustainable market.
See more at www.communitynews.com.au/realestate/.