Eager buyers are lying in wait for prime holiday selling conditions to emerge from their festive slumber.
According to Pulse Property Group director Di Addenbrooke the shortage of stock on the market in January meant many canny homeowners were preparing to make their post-Christmas move.
“With fewer people in the market there are more opportunities for astute buyers,” Di said. “And it’s important for potential buyers to understand the market in order to secure a property at the right price.
“Make sure you engage a trusted agent who has a sound knowledge of the local community and the ability to research the market data necessary to settle on the right value for your property, as well as determining a sale price that accurately reflects the property’s location and value.”
REIWA President Damian Collins agreed sales were expected to gain momentum in 2020.
“Perth currently has the lowest median house value of any major capital city. This combined with strengthening rental conditions and the opportunity to get into good suburbs at an affordable price point, means investors are likely to re-enter the market.”
Mr Collins said there was also the possibility that rising consumer confidence levels, coupled with improved housing affordability, could translate into higher sales volumes than seen in the last few years.
“The full impact of the rate cuts and tax reforms put in place during 2019 have not yet made its way to WA, however it is expected that the onset of these initiatives will be seen later in 2020,” he said. “With the current low interest rates and Perth’s population growth slowly but steadily improving, Perth’s median house price could improve over the next 12 months.”
Mr Collins said the upward trajectory of the Perth rental market should also continue through 2020 with consistent demand in line with improving population growth and reduced supply the key drivers for this improvement.
“We are already seeing competition for good, quality stock which means we can expect this to pick up at the start of next year, and continue to gain momentum later in 2020,” he said.
Perth’s overall median rent price has held at $350 per week since April 2017 – the longest period of stable rents Perth has experienced since REIWA first started recording rental data in 2001.
The Real Estate Buyers Agents Association of Australia said peak holiday periods like January presented good opportunities for buyers and more flexible conditions.
“Fewer buyers, mean less competition and the added benefit for buyers to ‘shop around’ for what suits them best,” a spokesman said. “What you find at this time of year is that many people who have bought in December are more likely to be under pressure to sell in January.”
REIWA also flagged the WA Government’s mid-year budget review as a welcome development for the market, stating that it was a “great opportunity to reinvigorate the property sector”.
Treasurer Ben Wyatt this week revealed that the State’s economy was expected to grow by three per cent.
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