It’s no secret anymore that Perth is experiencing a long-awaited market recovery. However, much like the rest of last 12 months, things haven’t gone the way we’re used to, even when it’s good news for sellers. While prices are undoubtedly climbing, stock remains low, meaning that securing a popular listing can be a bit of a battle, and the eventual buyers are highly likely to have paid overs for the property they wanted. This obviously goes some way towards understanding why prices have increased, but it’s also a matter of how long demand will outweigh supply, and whether or not an eventual increased supply will have adverse effects.
Days on market has naturally been the most eye-catching figure over the last few months. According to REIWA, median time to sell a property last month was 17 days, the lowest since 2006! Rental listings have followed this trend with a 19-day median time for March, which is the fastest since 2013. This is great news if your particular situation demands a quick sell. You may be in need of some extra cash after downsizing or perhaps you’ve suddenly experienced a change in personal circumstances. Either way, this “perfect storm” if you will, more or less ensures that a quick sell doesn’t necessarily mean a huge compromise on price, as the buyers have already had to compete among limited stock.
The start of this month has also finally seen the end of the rental moratorium. Landlords and potential owners are finally able to set their own rents for the first time since before COVID-19. This should hopefully lead to fertile ground for investors looking to buy as well, as the returning ability to name their rental price can ensure the mortgage on their investment is at least partially covered by tenants. This confidence from rents being in line with the market then allows investors to be a little more flexible with what they’re willing to pay for a listing, which provided there’s no more emergency legislation, should mean more in your pocket.
It’s certainly not lost on us that the advice we’ve given so far should have the for sale sign up before you’ve even finished reading this blog! However, for the first time in a long time, the future looks bright as well. Recent revised forecasts from REIWA show an expectation for another 15% of growth this year. Supply isn’t expected to catch up with demand until more homes and apartments are built, and while our median house price still sits at $495,000, our peak in 2014 was $550,000, so the gap is well and truly closing.
As you can see, there’s a lot to be optimistic about right now and throughout the year, so an answer on when’s the best time to sell is thankfully not so straightforward. A strong forecast obviously indicates that there’s time if you can afford to wait, but there’s also no reason to feel like you’re jumping the gun if you need a quick sell either. Basically, it just pays to be a West Aussie! 😊