February saw the continuation of the steady-as-she-goes recovery of the Perth property market for 2022, with a 0.3% increase in home values reported by CoreLogic.
At Red Fox, we’re continuing to see demand outpace supply for character properties and quality trade-up homes. However, interest in the multi-residential unit market still lags behind houses.
With WA borders opening and tens of thousands of people expected to arrive in the coming weeks and months, that more subdued multi-residential market may soon change.
The recent relaxing of border restrictions have already contributed to a jump in enquiries from people returning to WA.
Many seem to be aware of the Perth market’s housing supply shortfall and affordability relative to the rest of Australia and are keen to buy.
February’s days on market averaged 16, with some suburbs such as Bayswater selling significantly faster.
There were 7,913 properties for sale at 27 February – 2% fewer than four weeks earlier.
House listings decreased 1%, units remained steady, and vacant land went up by 3%.
Despite continued pressures on the rental market, rents held steady overall at a median of $450 per week in February. However, there are always exceptions, with Yokine recording an increase (up $15 per week to $475) and rents forecast to rise further this year.
At the end of February, Perth vacancy rates were similar to that of the end of January, sitting at around 0.8%.
With borders opening, we expect to see increased competition for rentals from new arrivals to WA in the short term. That population increase is necessary to fill skilled job vacancies so that housing construction timeframes can get back on track to relieve pressure longer-term.
So what’s next?
The combination of a people influx, rising COVID infection rates, low supply, and strict capacity limits at home opens will likely make for an interesting March.
But our view remains unchanged from the end of January.
Renting and thinking about getting into your first home?
We believe now is the time.
There’s still good value to be found in the local multi-residential market with prices, on average, still well below where they were at the peak.
If you’re an investor chasing yields – consider jumping into the multi-residential market now, and fingers crossed, enjoy the benefit of forecast price and rental increases this year.
Looking to upgrade?
We suggest doing it sooner than later.
Waiting may result in a widening gap between where you are, and where you want to be. That’s additional money you’ll need to find or fund out of your own pocket.
Thinking of selling and worried about home open capacity limits affecting your sale result?
Don’t be.
As long as your agent has a plan (which includes video) and isn’t carrying too much stock so that they can manage home opens, our advice for most sellers is to go now while we’ve got an influx of new buyers combined with supply shortfalls.
Don’t fall for the fear trap of selling to that supposed red-hot buyer off-market either – especially now that borders are open. If your agent is pushing you to sell to someone on their buyer database, that might be because they want an easy result than genuine advice on what’s going to net you the best price.
If there’s one thing we at Red Fox have learned in the last 18 months, it’s that guessing price is like playing pin the tail on the donkey.
Unless you go to market, you don’t know who is around and what they might pay.
Don’t be lured down a route that risks leaving your hard-earned money on the table.
For a no-obligation, confidential chat to gauge where your property might sit and run through your options, call Nat now on 0405 812 273 – we’d love to help.
