Hello there, savvy property peeps! Here at Red Fox, we’ve got our fingers firmly on the pulse of the Perth inner north property market, and wow, has October been a whirlwind or what!
Let’s dive right into it, shall we?
Sales market: Fast, furious, and record-breaking
If you blinked, you will have missed a house sale in Perth this October.
Houses flew off the market in a median of just 8 days, a new record.
In REIWA’s latest update, CEO Cath Hart highlighted the incredible demand for established homes, pinning it down to a perfect storm of strong population growth, rental market challenges, and building constraints.
In other words, folks are snapping up established dwellings faster than you can say ‘sold’! And faster than we can list them.
There’s no doubt it’s a seller’s market, with listings in Perth nearly 45% below the five-year average, and sales activity 25% above. Wowsers.
The trend is our friend (if you own something that is…)
Perth’s median house price rose to a new high of $575,000, up 1.6% from September and 10.8% for the first 10 months of this year, while unit prices held steady at $400,000.
REIWA expects to see unit prices trending upwards in the coming months as well as continuing house price growth through to the end of this year. The Perth market seems to have finally found its rhythm, and it’s dancing to the beat of its own drum.
And before you begin to form the letter b on bubble, remember we’re still the second cheapest capital city in Australia to buy a property.
Rental Market: We’re having a heatwave
The rental market is sizzling, and there’s not enough sunscreen to go around. If you’re looking for a rental, you’re likely feeling the burn.
The median dwelling rent price hit a new record of $590 per week, an 18% year-on-year increase.
Trying to score a rental is like playing whack a mole, except 50 other people also have a mallet. With 1,719 properties up for grabs at the end of October, supply is tight, keeping everyone on their toes.
The median leasing time remained unchanged from September at 14 days, showing a stable, but speedy reaction time in the rental world.
Interestingly, despite rent increases, at Red Fox, we’re still seeing landlords choosing to bail out of their investment properties thanks to a combination of price growth and higher interest rates. Almost all the ex-rental stock we’re selling is being snapped up by owner-occupiers, leading us to speculate that supply in the rental market will likely be squeezed further coming into 2024. If you’re a tenant, it won’t be fun.
The Takeaway: Be Prepared
If you hope to buy a property or secure a rental, it’s all about the P’s: persistence, patience and pulling your finger out! The stats show if you don’t make the first home open, the property will be gone.
If you’re buying Ideally get your finance pre-approved, or at a minimum actively engage with a broker – sellers (and their agents, like me) love buyers who are organised.
Sign up for website alerts, sign up with agents, and if you work away and struggle to get to home opens, maybe give a buyer’s agent a thought or two.
If you’re renting, make sure you have your references and documents organised. Think about how you’re presenting at the inspections and make a point of introducing yourself to the property manager.
It’s all about putting yourself in the right place at the right time – with a bit of perseverance, you’ll find your perfect match.
So, there you have it good folks, a snapshot of Perth’s property market in October 2023.
Fast sales, rising prices, and a rental market that’s as strong as a double-shot espresso. It’s all happening, and we’re here for it.
Stay sharp and keep riding the waves!
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Wanting advice about your own specific home and circumstances? Call me now on 0405 812 273 – we’re here to help.
Red Fox Property Group are ratemyagent Agent of the Year award winners in Mount Lawley, Inglewood and Bedford. We specialise in the suburbs surrounding Beaufort Street and beyond.
