Perth remains one of Australia’s strongest property markets with house prices steadily climbing despite drops across the country.
There have been a number of “forecasters”, namely financial groups and economists who have instilled doubt in sellers via predictions of doom and gloom scenarios - but with so many conflicting pieces of information out there, how do you know what to believe?
Real estate agents are telling you it’s a great time to sell while forecasters are telling you to hold tight – who do you believe?
We can’t tell you that, but we can reiterate what’s going on in the market, and explain why we think houses prices will remain steady…
Firstly, if you are doing your own search, make sure that what you’re reading is pertaining to WA and Perth specifically – sounds like a given, though you’d be surprised how many articles and studies talk about the ‘Australian market’, when in reality WA is dancing to its own beat and always has been. We always recommend heading to www.reiwa.com.au for accurate insights.
WA has a number of economic tailwinds that are likely to boost demand for properties (and consequently drive prices up) over the next 12 months.
We already know how much the economy affects our industry… We’re seeing a very low unemployment rate of 3.4% and significant Government investment in infrastructure such as Metronet and Edith Cowan University which will not only lead to more jobs, but more migration to our state.
It's this strong economic strength that has held up property values in the past year while interest rates have risen sharply.
Perth’s extremely tight rental market of just 0.4% is also making purchasing more attractive, given the extreme challenges of securing a lease – so sellers are able to capitalise on this and receive top dollar for their property.
More than ever, what WA needs now is property buyers willing to lease out their property to ease housing pressure!