We are finally here! Our market recovery has held steady throughout the cooler months, and now it’s time to reap the rewards of one of the most anticipated peak seasons in recent years!
However, the destination is of course nothing without the journey. Taking a look at the progress we’ve made, and more specifically, the areas in which we’ve made the most improvement is vital when it comes to forecasting what this spring selling season will look like…
Starting with this past winter, as mentioned, the usual cold weather slowdown still didn’t manage to undo all the great strides of the financial year which preceded it. Stock was still absorbed quickly, and last July saw home values increase 0.3 per cent. Bear in mind that while 0.3 per cent may not seem like much for the past few months, any growth whatsoever during the winter off-season following a lean few years is incredibly promising, as it’s more about not losing ground heading into spring, and ensuring we’re in the box seat.
Moving onto the entire last financial year, that’s when things start to look really exciting! The first half of 2021 saw a home value increase of 7 per cent, while the last 12 months up to the start of August have seen an improvement of almost 11 per cent! Currently limited stock has also seen the same improvements to median selling days, with houses selling 27 days faster than they were a year ago, along with many of our most frequented northern suburbs such as Kingsley, Heathridge and Kinross averaging around a week on the market.
For owners and investors, the rental market is also finally starting to look up following an unprecedented period of emergency policy and upheaval. Rent has held steady over the past few months at around $425, only slightly below the peak median rent of $450 from around 2013/14. While that may not be the most welcome news for tenants, it’s not all doom and gloom for them either, with rental listings increasing by around 13 per cent following the worst of the rental shortage in December last year. Admittedly, we may need a bigger improvement than this to stop the shortage completely. However, it’s nonetheless contributing to investor confidence which has also seen a drastic post-COVID upswing, following ABS data showing a 209 PER CENT increase in investor loan approvals from May 2020.
We’ve now seen how well everything’s going for the state overall, but how about here at Peard? Well, when breaking down improvements by suburb, it only helps our cause. Some of the biggest improvements over the last financial year in both sales volume and price growth comes from coastal suburbs where our presence is felt most. Sales activity in Ridgewood, Two Rocks and Trigg have all increased by over 100 per cent from the 2019/2020 financial year, while suburbs like Sorrento and Trigg yet again, have seen price growth between 25 and 30 per cent!
If these last 12 months haven’t convinced you that now’s the time to act, then you should only need the next month or so to really see things getting into gear. If the numbers themselves still aren’t enough, then don’t forget about the weather either! All in all, the start of spring has people hanging out to leave the house and enjoy the sunshine again. Putting aside the fact that in WA we’re lucky enough to even have that option at the moment, home opens are a great excuse for that. Either way, we can’t wait to see what’s in store over the next few months!