Why Perth is currently Australia’s fastest growing major property market.
|Data from CoreLogic showed that Perth was the fastest-growing major market in Australia with the Perth home index increasing 1.6 per cent in January and up 3.8 per cent from October 2020.
This is supported by REIWA data, which showed that Perth’s median house price has increased to $490,000, which is up from the low of $475,000 in June last year.
The increase in price can be attributed to the low levels of listings in the market. In January, there were 8,287 properties for sale in Perth on reiwa.com, which is down 33.3 per cent compared to the same time last year. If we look back further, in March 2019, there were 16,992 properties for sale in Perth! In a period of less than two years, the number of properties for sale has halved.
Properties are now selling faster with median days to sell sitting at 21 days, which is down from 43 days compared to this time last year and 59 days compared to March 2019.
The market has changed dramatically, buyers are feeling the competition out there as properties are snapped up within the first couple of days, sometimes properties are sold without the buyer even inspecting the property!
My advice to buyers is to make sure that your offer looks competitive and highly attractive. Sort out your finances so you can reassure the seller that you have pre-approval.
Also, consider alternative properties that may not be so appealing. Everyone wants a fully renovated property, so the competition will be intense. Maybe look for something a little rougher that you can do up. There will be less demand for these properties so you may be able to purchase them factoring in renovation costs for a price much lower than a similar fully renovated property.
With the lockdown due to finish this Sunday, how lucky are we to live in Perth? No wonder everyone wants to buy a house in Perth!
As always if you would like to talk about property, please feel free to call me anytime.