Perth property prices increase at the fastest rate in 10 years.
Perth property prices have been steadily increasing but in recent months, the top end of Perth has experienced accelerated growth.
Inner city suburbs like Mount Lawley have seen the median house price increase 17.33% since the low in July 2019. Most of the growth has been achieved in the last couple of months. The median price is now at $1.09M which is only 3.54% off the peak price which was achieved during the boom in 2014.
As prices approach their peak, I feel more stock will also enter the market as this could be the first time since 2014 that most people will be able to sell their properties for a profit (rather than at a loss during the last couple of years).
Suburbs close to their peak or about to exceed their peak include North Perth, Mount Hawthorn and Inglewood. We could see more properties come to market for these suburbs.
If this momentum continues, I feel in the next 3-6 months most inner city suburbs will exceed their peak prices and we could see more housing stock enter those markets as well.
Why have prices increased? It’s simply supply and demand. There are 50% less properties for sale than this time last year, and due to a number of factors, demand is constantly increasing.
It’s undoubtedly a favourable time to be a seller, however the approach you take to selling your home in a transitional market is paramount to achieving a premium price.
I feel the strategies that were utilised in a slow market to sell properties are even more critical now because the end result can be dramatically amplified.
Selling too quicky or off market could lead to you underselling your asset. From my experience, the highest offer usually comes through within the first 3 weeks of listing.
I had a recent sale whereby we received an extremely good offer after 2 weeks on the market. The sellers wanted to accept the offer, but I advised them to wait another week, days later we received an offer that was $30,000 more!
Sellers may think that because they are now assured of a sale, that they can cut costs on marketing. This could be a costly mistake as 60% of record prices are achieved by out of area buyers. These buyers do not see your property if you use traditional methods of marketing such as realestate.com.au. Since out of area buyers can pay an extra 5-10% compared to everyone else – by not marketing to this group you could be under-selling your property.
We had a riverside property in Maylands which was with another agent and the maximum price they could present to the seller was $1.6M. After we took over the listing and marketed the property to out of area buyers, we were able to sell the property for $2M to a western suburbs buyer that hadn’t considered looking in Maylands. So now in a hot market, imagine the prices that could be achieved if out of area buyers are competing for your property.
Another factor to consider when prices are rising is your pricing strategy. I feel by advertising a price on your property will put a ceiling on what you can achieve. At Realmark, we use our tried and tested Set Date Sale selling strategy whereby we market your property without a price. In the current market we have been amazed at the sale prices we have achieved – many times exceeding ours and the seller’s expectations.
If you would like to know more about how I can maximise your selling price and to ensure that you are not undersold please give me a call.