Does it feel like there’s nothing on the market and the chance of finding your dream home is less likely than a lotto win?
The number of Perth properties listed for sale hit a twelve-year low of 6931 at the end of December 2022, and is now even lower (ouch).
There were only 6833 properties on the market for the week ending 16 April 2023, compared to 7754 in the same week last year.
According to REIWA, the decrease in overall stock levels isn’t due to lower numbers of homes coming to the market, which are levels higher than pre-COVID, but the speed of sales.
Homes sold in a median of 13 days in March. And while April is typically seen as a quieter month, at Red Fox, we’ve seen strong buyer turnout at home opens in the last few weeks, with properties attracting multiple offers.
Our median days on market are currently 7, and the only reason it’s that high is that we won’t sell properties until we’ve had our first home opens.
So how long will it last?
With further population growth of 1.5 per cent predicted by the WA State Government for 2022/23 and 2023/24, the shortage of available properties to rent and buy doesn’t look like easing soon.
While the backlog of COVID-incentivised builds is entering supply, this extra housing stock is being offset by new entrants into the State. In addition, it’s feared that falling new home approvals will further impact the market down the track.
So if you’ve been holding out, hoping for falling prices, think again. REIWA expects demand and prices to remain steady, with low levels of price growth still possible in 2023.
Buying conditions are unlikely to get much better than this any time soon.