One of the major problems with the local property market right now is the blockages caused by short housing supply. Would-be sellers – whether up or down-sizing – are ‘stuck’ because they are struggling to find property that meets their needs and with short rental supply too, the usual ‘fall-back’ of renting for a period is also problematic.
With only around 3,250 properties listed for sale on reiwa.com buying opportunities are limited considering there were around 14,000 listings less than five years ago. However, if you are considering selling your property, it’s worth considering bringing your property to market sooner rather than later. Off the back of higher-than-expected inflation figures reported this week, interest rates could be on the rise again come August and with the usual spring listing rush not far away,
more supply could come into the market.
That said, it remains likely overall supply will remain below average levels for some time, particularly given higher levels of state migration, piling pressure on the demand side. Buyers remain hungry for quality property despite recent interest rate rises with sales numbers running at about 900 per week metro wide. Average days on market have settled though, stable at 8 days for the past three months.
The Reserve Bank’s rapid increases in official cash rates added 35 percent to average mortgages in 12 months, or about $1,000 extra per month for an average mortgage. This is beginning to hurt those borrowers who took on low interest fixed rate mortgages in 2021, many of whom have properties in the outer suburbs. Supply in these markets will rise if these borrowers can’t meet these higher repayments.
For property owners in and around Fremantle, coming to market now gives sellers the opportunity to buy closer to a settlement period that will align with more property coming to market in spring, avoiding the need for a ‘double move’. Sellers are holding the competitive advantage in the market so there’s opportunity to negotiate outcomes that include things like an extended settlement period or ‘rent back’ options.
Importantly, in this market selling and buying within the same time-frame is preferrable as property values continue to rise, choice remains constrained, and investors turn their attention to our relatively under-valued market.
REIWA tells us Perth’s median house price has hit $800,000, a $100,000 (about 15%) rise since this time last year. Recent “catch up” price rises have been rapid. In 2020, the median house price was $478,000. Sales volumes continue to increase too, with about 60,000 sales across Perth in 2024 … Read more
Bumping into a local developer this week at a local café led to an interesting chat about the current state of the local property market and the difficulties he faces in getting projects out of the ground. In summary, unless a developer can sell an average two-bedroom apartment at completion … Read more