It’s fair to say that the recently released CoreLogic October 2021 Perth property market stats have us scratching our heads.
What does a 0.1% decrease mean a month after a reported 7% correction in annual Perth property prices? If you don’t remember that, you can read about it here.
We reached out to the clever clogs in the research department at reiwa.com, but they couldn’t shed any light on the stats either. Only CoreLogic knows how the index is compiled. reiwa.com did say that the numbers weren’t “consistent with anecdotes from Members suggesting continued strength on the ground.” Good to know we’re not the only ones confused. Sort of.
So what do we know?
1. That a movement of 0.1%, if that’s what’s happened, isn’t a correction or indication of an imminent correction. Perth is still in a growth trend, with home values well up over the last quarter and year.
2. Beyond prices, the supply and demand fundamentals remain supportive of price growth. For example, Perth sales consistently exceed 1,000 per week, and sales listings remain low by historical comparisons.
3. At Red Fox, of the nine properties we sold in October, two achieved street records, all sold within the first week with multiple offers, and our sale prices ranged from 3 to 15% more than our expectations (some of which were already pretty high).
So what does that tell us?
That nothing beats keeping an eye on what’s happening week to week at a local market level.
I’ve lost count of the number of times I’ve said and written this: the Perth market is not homogenous.
I frequently describe our local inner north market as still being a bit all over the shop.
Some property types, like quality character homes, are, mostly, booming. Some multi-res stock is showing good signs of recovery. Other parts are, well, still a bit shite.
But everything is a hell of a lot better than it was 18 months ago.
Let’s see what November 2021, traditionally one of the busiest months of the year, brings.
And if you’re wondering where your specific home or investment property might be sitting in all of this? Give us a call on 0405 812 273; we’d love to help.