The CoreLogic house price index for Perth showed a 0.4% decrease in overall property prices for September after a 0.2% reduction in August.
So what’s happening?
Our opinion at Red Fox is that the market is in flux.
We expect to continue to see month-to-month variations in price as consumer sentiment reacts to interest rate rises and ongoing negative headlines regarding the ‘Australian’ property market.
When the press mentions the ‘Australian’ market, they really mean Sydney and Melbourne.
We finished September with 8040 properties listed for sale, 1.8% lower than in August. That, combined with Perth’s continued affordability relative to other capital cities (our house prices are 47.6% lower than the national median), means we’re better positioned than the eastern seaboard markets to weather headwinds.
The median time to sell a property also fell by two days in September, down to 15. A balanced market would have a median sale time of around 30 to 40 days.
Of course, these are overall statistics, and different suburbs and property types perform very differently.
As we said in August, we are confident that the fundamentals support continued growth locally – our strong economy, low unemployment rate, anticipated population growth, and current housing shortage.
This brings us to the rental market.
Rental stock levels on reiwa.com are at their lowest level in 12 years. To further illustrate the low supply, our population increased by 20% over that period.
Unsurprisingly, pressures on rents continue. The median rent rose $15 per month in September to reach $495 per week, following a $10 rise in August. So tenants in a position to buy might want to consider exploring their options to achieve greater housing security. We see good deals still in the local multi-residential market, where prices have not yet fully recovered and like houses, are the cheapest of all Australian capital cities.
While Perth doesn’t experience the same level of seasonal price variation seen in the Eastern States market, research by realestate.com.au shows we typically experience a slight increase in property prices in November. So as we start to see more new homes coming online in the ordinarily busy lead-up to Christmas, we’ll keep a keen eye on activity to see if this continues to be the case.
For a no-obligation chat about your specific situation, call Nat on 0405 812 23 or email us at [email protected].