We are in recovery in more ways than one!
Who would have thought we would be in this position just 3 months after COVID-19 restrictions were first introduced in Western Australia. Social distancing measures and restrictions have been eased not only in Western Australia, but around the country. This has resulted in the return to a more “normal” life earlier than initially expected. Unemployment figures have now been revised from the forecast of 10% in the June quarter. Consumer and business confidence is increasing weekly as the decrease of COVID-19 cases and restrictions are lifting around Australia.
Perth Market Snapshot
Weekly sales in Perth for the week ending 21 June has seen 1,000 sales for the first time since June 2013. This is almost double the 52 week leading average of 539 sales per week. Land sales were the star performer, due to the building schemes announced earlier in the month. Weekly land sales have not been as high since August 2009. The top suburbs for land sales were Madora Bay, Baldivis, Maddington, Wellard and Hammond Park, all which are located in Perth’s outer suburbs. Established house sales have continued to increase also during the month of June. The interesting number is the total properties available for sale 10,892, just 4 weeks ago there was 11,567 properties for sale in Perth.
The outlook for the Perth property market is said to have a softer landing than predicted by the property pessimists. In accordance with the capital city home value ranges, Perth has fallen 1.1% as a rolling average over the past 28 days. Not all suburbs in Perth have performed the same, Mandurah has -2.2%, Perth South East -1.2% Perth North West -0.3%, Perth North East 0.0% and Perth Inner has seen an increase of 0.5%
source: Corelogic
Searches for property on realestate.com.au has continued to rise after the fall at the end of March. Sale searches are now 47.5% higher than they were a year ago. Western Australia had an increase for the week up to 15th June of 20.4%
What about after September?
Some people have been reluctant to enter the property market due to the belief of an upcoming financial cliff after the end of September, this is when the banking mortgage relief deferrals come to an end. Banks have provided relief for 1 in 14 mortgages across Australia, with 20% of those now resuming their mortgage payments. The major banks have recently confirmed they will be supporting customers in need beyond the end of September.
Government Stimulus and Building Grants
With all the Government building grants currently available, land has become extremely popular and accounted for over 40% of sales in Perth last week. Land prices have started to rise and it is not uncommon to see 4 or 5 offers for one block of land. One builder in Perth has stopped taking orders for new builds and without doubt, building costs will start to rise. Building a new house and taking advantage of the building grants, may not be the best decision for everyone. Recently we have seen existing houses being sold cheaper than an equivalent block of land.
For those interested in the building grants, an information sheet can be found here with all the details on eligibility.
Outlook for Perth
The Perth inner market in general is performing well as the increase in values are showing. Home opens are seeing increased buyer activity and it’s building weekly. Property priced correctly, is selling in a reasonable time frame and receiving multiple offers. Auctions are seeing an increase in attendance with multiple bidders. Not all of the Perth market is expected to perform well, now more than ever doing the research on the current market conditions, supply and demand are crucial.
One of the frequent issues we are hearing from buyers is the low levels of stock. Getting access to more opportunities, without the competition and pressure of other buyers is a great option. A buyers agent can connect you with these prospects, providing greater potential. They can turn to their close network and connections to locate off market opportunities.
You can increase options for your property search and rest assured that you are in the best hands when it comes to appraisal and negotiation.
If you would like to chat to our buyers agent about your property requirements and strategy, please give us a call on 0401 774 715 or email us today info@resolvepropertysolutions.com.au
We’d love to help you on your property journey.
