One of the mistakes buyers and sellers often make is thinking that the Perth property market is homogeneous – that the average % increase or decrease reported for the Perth property market overall will be the same for all types of properties and suburbs across the metropolitan area – it isn’t.

Within the Perth property market there are many different micro markets. How those micro markets perform vary from suburb to suburb,  from property type to property type and even within property types within a suburb.

A recent example of this was a report in the West Australian stating that on average, Perth property sales transactions were at their lowest level in over 10 years, having dropped by almost 4.5% in the last twelve months.

Now those statistics are an overall market average, so will only be true for some suburbs and/or property types within a suburb.

But like any average, it won’t be true for everything, and if you’re relying on those statistics to make buying decisions you could find yourself caught out.

The suburb of Vic Park, for example, has recorded a massive 43% spike in property sales transactions in the same period – so as a micro market it’s considerably outperforming the Perth average, and if you’re a buyer or seller in that suburb you need to take into consideration those different conditions accordingly.

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The message is, if you’re buying and selling, don’t rely on property news and statistics that report overall market averages.  Do your homework on the local micro market you’re looking to buy or sell in so that you’re across the trends in that specific area.

There are already suburbs in Perth that are under supplied with certain types of housing stock and starting to turn. There are certain types of properties within particular suburbs that will go Under Offer within days.

Statistics and averages are lagging indicators, you’re not going to know if the Perth market or a particular suburb or a particular property type has bottomed until after the recovery has already started. Don’t let trying to time the market or inaccurate statistical comparisons cost you a home.

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