All posts by Admin

Perth House Prices Highest in Years- And they Won’t Slow Down Yet.

As a Real Estate Agency we often get asked when is a good time to sell your property, and while there are many factors that go into this answer we think the current market is ideal if you’re looking to sell quickly and get a great price! 

Want to know why we say that so confidently, then read on.

 

Median House Prices Soar

The median Perth house price has risen again, now officially surpassing the median recorded during the housing boom of 2014. Domain statistics have shown that the price of a Perth home has increased by 1.5% in the first three months of 2022 alone! The Median price for a house in Perth is now sitting at $622,000 compared to the previous record of $616,000 in 2014. 

 

During the pandemic families realized they needed bigger yards, and more space inside and they were happy to pay to upsize. With the Perth borders now open, and interstate buyers running to enter the property market we’ve seen an influx in interest in Perth property to live and invest. This isn’t slowing down either, while we’ve seen an initial rush from interstate buyers and Perth residents moving back home we predict there are still individuals that are keen to enter the market who haven’t made the first step yet. While the property prices smash Perth records, they are still relatively affordable compared to the other capital cities which is why the property shortage won’t ease for a while and why we can confidently say our vendors are getting great prices for their properties and they’re selling in weeks. Perth property overall continues to sell quickly, and produces great prices for sellers. 

 

The President of the Real Estate Institute of WA, Mr. Damian Collins has explained that he believes these conditions will continue for the remainder of the year 

“We don’t anticipate market conditions slowing any time soon, with a further 10 per cent price growth expected in the 2022 calendar year.”

 

2022 Federal Election- How it Affects the Current Market

The above figures can comfort buyers and sellers that are anxious with the incoming 2022 Federal Election. From what both of the major parties have currently announced, neither party has said they will make any major changes to housing policy which could impact property investors, first time buyers or general buyers. Experts are saying that this time around the election should have very little impact on buyer and seller confidence, or market conditions which is a relief for all. In the 2016 and 2019 Elections the proposed changes to negative gearing lead to market doubt, but in the current election there is bipartisan support to hold on to negative gearing which means more certainty for the property market. So even with an upcoming Federal Election, we can see that the Perth Property Market will remain strong.

 

While writing this blog post the Labor party has announced a new shared equity scheme. This would actually make it easier to enter the housing market for individuals earning less than $90,000, or couples earning less than $120,000 that have no property currently. The scheme has 10,000 spots available, and sees the government cover 30-40% of the purchase price by taking part ownership of the property. The percentage is able to be bought back by the homeowner from the Government, or they can leave the shared ownership. The only conditions are to live in the property for two years and, if an owners’ income increases during this period, they would be required to start purchasing more of the property.

 

Are you looking to sell your home? Why not book a free appraisal with one of our agents, and see how your property measures up in the current market.

 

NAB Quarterly Australian Residential Property Survey – March 2022 Report

We recently participated in the NAB Quarterly Australian Residential Property Survey, and the results for March are here. So let’s dive in and see what NAB had to say:

Housing market sentiment buoyed by growing rents as prices slow, but confidence slips as expectations for price growth scaled back. Early signs foreign buyers may be returning to the market, while interest rates weigh more heavily on local homebuyers. NAB’s outlook for dwelling prices is broadly unchanged – we still expect a slowing in national prices through 2022, before a moderate fall of around 10% in 2023.

Survey highlights:

The NAB Residential Property Index printed at a steady +58 pts in Q1 (+59 pts in Q4), buoyed by solid rents as house price growth softened. WA and the NT led the way, with sentiment lowest (by some margin) in VIC. Confidence however slipped further with the 12-month measure down for the fourth straight quarter to +49 pts and the 24-month measure falling to a below average +37 pts. The survey also points to slower national house price growth in the next 1-2 years, with WA the clear out-performer and VIC trailing. Rents are however expected to grow well above average survey levels and outpace price growth in all states. Though first home buyers remain the most active participants in new housing markets, the survey indicates their share of total sales dipped to a 2½-year low 40.5% in Q1. Market share of foreign buyers in this market however ticked up to a near 2-year high 7.9% nationally, and accounted for an above average and 4-year high 1 in 10 sales in NSW – a development to watch as international borders start to re-open. With interest rates widely tipped to start rising this year, property professionals also identified rates as a growing impediment for new housing development in all states, and a bigger impediment for established home buyers, with interest rates now impacting these buyers more than at any time over the past 10 years.

 

The view from NAB:

Our outlook for property prices is broadly unchanged in annual terms – where we expect an overall rise of around 2.5% this year, before prices decline by around 10% in 2023. Overall, the housing market has turned slightly quicker in Sydney and Melbourne than we had expected in early-2022 but out-performed in the smaller capitals. We expect growth to slow in Brisbane and Adelaide, before turning negative at the back end of 2022, alongside falls in the larger capitals. This is in line with our outlook for the RBA to begin steadily increasing rates from June this year, taking the cash rate to 1% by year’s end and 1.75% by end-2023. However, it is important to note that we see this as an orderly correction in house prices with the economy and labour market continuing to perform strongly and wage growth strengthening. Overall, household balance sheets remain in good shape and the savings rate is still elevated, suggesting households will be able to adapt to higher interest rates.

 

>>Click here to find the full report<<