With properties listed for sale falling to a 10 year low of just 7899 and selling at the same pace as they did in 2006 (21 days on average), where are we headed?
It’s a good question and one that we’re quite frankly struggling to answer. The pundits all seem to be optimistic on the medium term outlook (2021/22) for the Perth market with Westpac predicting growth of up to 20% over the next two years.
The Perth market recorded its 6th consecutive positive month in February 2021, with growth of another 1.5%. Statistically, we’re still about 17% back from the peak in 2014 with prices reportedly commensurate with where we were at the end of 2006/start of 2007.
That said, those statistics are for the Perth market overall, with some suburbs and property types performing well ahead of others.
In the Inner North market, houses appear to be achieving prices well above the overall reported increases for Perth. Whilst the multi-res market had been lagging a little and was harder hit by the downturn, it’s also now showing signs of green shoots and price growth.
The end of the rental moratorium on 28 March may see additional stock finally coming to the market. We’ve been doing more appraisals for landlords than ever, but our sense is that it’s likely to influence supply at the lower price levels in the Inner North market rather than introduce the premium family homes that many buyers are chasing.
If you’re waiting for the market to “settle down” before buying, be aware that whilst the level of activity may have changed, so too will have prices.
Natalie Hoye is the Founder and Licensee of Red Fox Property Group – a boutique agency doing things differently in the suburbs surrounding Beaufort Street. We call it ‘real estate achemy’: a genuine blend of science and intuition, marketing and magic, head and heart. The Red Fox Way. And we’d love to chat with you about your local real estate needs. Call us now on 0405 812 273.