Sta­bil­ity may her­ald a turn

North West Telegraph - - North West Property - Hay­den Groves Hay­den Groves is pres­i­dent of the Real Estate In­sti­tute of WA.

Over the past cou­ple of years, as the Perth prop­erty mar­ket has slowed, there has been a lot of talk about “wait­ing for the bot­tom of the mar­ket” to ar­rive.

In an ideal world, it would be crys­tal clear when the bot­tom had ar­rived and primed buy­ers could act im­me­di­ately to se­cure their dream home, con­tent in the knowl­edge they had bought their prop­erty at the ab­so­lute low­est pos­si­ble price.

The truth is, it is vir­tu­ally im­pos­si­ble to tell whether the ac­tual bot­tom has been reached un­til it has passed and we are on the up­swing again.

The best we can do is ob­serve trends in the mar­ket and make an ed­u­cated guess.

It’s not an ex­act sci­ence and can be in­flu­enced by sev­eral ex­ter­nal fac­tors such as the econ­omy, con­sumer sen­ti­ment and State and Fed­eral elec­tions.

In Perth, signs over the last quar­ter sug­gest the mar­ket is be­gin­ning to sta­bilise, with all key in­di­ca­tors (me­dian house price, sales ac­tiv­ity, list­ings for sale, av­er­age sell­ing days and dis­count­ing) record­ing lit­tle or no change in the three months to June.

His­tor­i­cally, one of the ear­li­est signs of a change of mo­men­tum in the mar­ket is a pe­riod of sta­bil­ity.

Although no one can ac­cu­rately as­cer­tain the fu­ture of the prop­erty mar­ket, the signs are there that we have fi­nally found, or are close to find­ing, the bot­tom.

If you’ve been think­ing of buy­ing a home or an in­vest­ment prop­erty, but have been hold­ing off for the right mo­ment to strike, I’d ad­vise you to take ac­tion sooner rather than later.

Although we might not be able to pre­dict with ab­so­lute cer­tainty the bot­tom of the mar­ket, we do know prop­erty mar­kets are cycli­cal and con­di­tions will change again.

With the signs there that we’re head­ing into a pe­riod of sta­bil­i­sa­tion, now is the time to buy. There is lots of choice in the mar­ket, with list­ings for sale re­main­ing at above-av­er­age lev­els, so you are in the best pos­si­ble po­si­tion to find a home that meets all your re­quire­ments at a com­pet­i­tive price.

I would ad­vise buy­ers who are con­sid­er­ing pur­chas­ing prop­erty in this mar­ket to take ad­van­tage of the steady, but qui­eter, con­di­tions. Do your due dili­gence and view a range of dif­fer­ent prop­er­ties in suburbs that ap­peal to you to en­sure you ex­plore all your op­tions.

If you’re un­sure what the best move is, speak to a lo­cal REIWA agent in your area about your plans. They are well ed­u­cated on your lo­cal mar­ket and will be able to ad­vise what is most suit­able for your sit­u­a­tion.

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