How to take advantage of the current market conditions
Perth Market Update
There is still plenty of activity in some parts of the Perth property market. Family homes in blue chip suburbs are still in demand and there are still first-home buyers searching although they are now primarily emotionally motivated and less financially motivated.
Top performing suburbs
It would be no surprise to most people that Perth prices have generally fallen in the past 2 years. However, there are still suburbs that continue to witness positive growth in the past 12 months, such as;
- Swanbourne – 17.04%
- Kalleroo – 17/05%
- Lathlain – 10.36%
- Menora – 7.23%
- Trigg – 6.07%
- Wembley Downs – 3.68%
(Source:Reiwa)
Although these properties are spread across the metropolitan area, they have one thing in common. They are all in an attractive location (beach, city, good school catchment area) and they consist largely of family homes as opposed to smaller investment properties. In other words, they are ideal locations to bring up the family.
How to take advantage of the current market conditions
In the current market most of my current clients are seeking an opportunity to upsize to a bigger family home. They are looking at buying a property where they will raise their family for the next 10 years or more. To get into that position they may have to take a small step backwards and sell their existing home or an investment property. Taking a smaller step backwards may also result in taking a loss when selling that property. However, when looking at the bigger picture they are coming out on top in comparison to only a few years ago as they will likely be able to buy a bigger home at a great price.
For instance, if the existing property which is currently valued at $400,000 has dropped 5% in the past 12 months. At the same time the new home priced at $800,000 has equally fallen by 5%, there is a saving of $20,000 in making the move today as opposed to 12 months ago. When considering your options, it is important to look at the big picture. Click here to find out what your property is worth.
Some clients are also incentivised to make the big move by interest rates at record low levels.
With the WA mining boom officially done and dusted, there are no signs that the economy is going to improve significantly in the short term. Properties take on average over 60 days to sell in the current market and there are a number of properties that don’t sell. However, there are still active buyers out there who will make a solid offer as long as the property is priced to current market conditions and presented well.
Right now, I am speaking with buyers every day about what they are looking for. Some are ready to write an offer right now but there is also a lot of buyers who are looking to make a move in the first part of 2017. To discuss your situation, please click here.
Readers should always seek their own independent advice prior to making any decisions regarding property or finances.
