The Perth property market is showing solid signs of recovery as we near the end of 2020 with CoreLogic’s Home Value Index increasing 0.6% in October, following modest gains in September, resulting in a 0.9% increase overall for the quarter.
House sale activity was 7% stronger in October than the same month last year with unit sales up a pleasing 20.7%, whereas land sales were down by 27.1%.
The number of properties for sale continues to trend downwards with 10,272 properties listed on reiwa.com as at 2 November 2020, 27.8% lower than the same time last year, with the median days to sell now down to 25 (versus 47 in October 2019).
Despite the rental moratorium in place until 31 March 2021 rents managed to increase by $35 to $395 per week for houses in the last three months and for units there was a $20 increase to $350. Stock levels in the rental market continue to decline creating a highly pressured environment with some agents reporting properties leasing within days of going online with average weekly rents expected to continue to rise for newly vacant properties and potentially taking off once the moratorium ends.
In the inner North market I’m seeing well presented and priced homes, particularly those that are representative of the typically popular properties in a suburb, going Under Offer within the first week of listing with the majority attracting multiple offers.
The danger for those wanting to trade up house or suburb (or both) that are waiting for their own properties value to rise is a widening price differential between where they are now and where they want to be as we’re starting to see signs of homes selling for more now than what they were purchased for a few years ago, despite statistics having us believe that they were better markets in those previous years.
Here’s hoping we see the current confidence and growing momentum continue into 2021. No doubt it’s going to be another interesting year.
Photo from Canva
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 alchemy’: 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.