Hello again, savvy property folks! Let’s dive into the latest buzz around Perth’s housing market for November 2023.
Perth prices rise again
November saw dwelling prices continue their steady climb, with the median house price reaching a sky-high $585,000 according to reiwa.com. Houses are vanishing faster than a cup of Messina Gelato (Coconut Dulche De Lec for me), with no signs of slowing down.
How well the market is doing depends on whose stats you read. CoreLogic reports that Perth dwelling prices increased 13.5% in the last year, with 5.4% of that growth in the last quarter alone. REIWA says it’s 8.2%, and PropTrack (owned by realestate.com.au) says it’s 12.76%. It’s also going to depend on which suburb you live in.
CoreLogic says that since the onset of COVID, Perth prices have risen 28.4% (so much for those predictions of 20% falls!), so we’ve come a long way since the bottom of the market in 2019/20. Despite the growth, we’re still the second most affordable capital city in Australia, so we’re well placed when it comes to further upside.
REIWA, CoreLogic and PropTrack are all betting on more increases for 2024 , and who are we to argue? Expect to see stock levels dropping further over December (we were down to 4,775 properties for sale at the end of last week), with hopefully an uptick starting mid-January.
But why all this frenzy? Well, it’s a mix of WA’s growing population (a solid 2.8% rise last year), rental market challenges nudging people to buy, and the building industry playing hard to get with home completions. While building approvals went through the roof in 2020, actual home completions are still playing catch-up, averaging 14,000 over the past three years. There’s just not enough properties to keep up with demand – and that’s not likely to change anytime soon.
Blink and you’ll miss it
Perth houses sold in a median of eight days in November, with some suburbs recording a median time on the market of just four days (Beechboro, Brabham and others). All of the suburbs with a median of four or five days are priced below Perth’s overall median, highlighting the huge thirst for affordable homes.
If you’re actively shopping for a home, make sure you’re signed up with local agents and for major portal alerts, that way, you’re less likely to miss out on something when it hits the market.
Perth rental tightness and rises continue
On the rental side, the median dwelling rent in Perth hit a record $600 per week in November. This is a 1.7% jump from October and a whopping 20% year-over-year increase. The most significant rent hikes were in Inglewood, Joondanna, Como, Orelia, and Leeming.
So, what’s the future for rentals like? More price rises, says REIWA CEO Cath Hart. While there were 1,948 properties available for rent at the end of November (a 12.3% increase from October), the rental market is still extremely tight, keeping the pressure on prices.
The Takeaway:
Perth’s property market is sizzling hot, with record prices and speed. Whether you’re in the market or just watching, it’s an exhilarating (or potentially alarming, depending upon which side you’re on) time in Perth’s real estate history. We’re curious to see what 2024 brings.
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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 real estate Agent of the Year award winners in Mount Lawley, Inglewood and Bedford. We specialise in the suburbs surrounding Beaufort Street and beyond.
