Q1 Analysis & Forecast, Floreat.
If we look at the Perth property market as a whole, it has remained relatively steady in recent years compared to Sydney and Melboune who have experienced huge spikes and subsequent falls. This is encouraging as there is smaller scope for a significant drop in housing prices and the trends show Perth is much more likely to remain steady as we have in the past.
Regional WA housing markets were seen to be in the recovery phase and starting to gently rise, alongside being less volatile and slower to respond to market shocks that other states. This certainly makes Perth a safer bet for investors, maintaining good value and steady return.
The WA economy and demographic trends had been improving pre-covid providing a strong foundation for post-crisis recovery. For example, in conjunction with our state’s iron ore exportation, WA’s predicted ‘mini gold rush’ also gave renewed optimism for our economy. Experts say that with a strong drive for ultra-safe investments, demand has been fuelled by central banks purchasing gold as a store of value, pushing gold prices up to record levels. Next year, it’s expected Australia will be the biggest gold producer in the world, with 70 per cent of the nation’s gold production taking place here in WA. We’re not a state who relies as heavily on tourism and entertainment like Tasmania for example. And in light of this, it’s expected we will be positively positioned to take on economic challenges, and even potentially experience growth.
“The lowest rates I’ve ever seen!”
Our finance broker says that despite all the turmoil, there’s never been a better time to review your home loan, lenders are offering fixed rates at incredibly low, never seen before levels and expects this to remain for the next few months. Banks are still open for business, speaking to a broker to navigate the best loan for you and getting pre-approved puts buyers in a strong position when looking to secure their next home. Yes, some individuals have experienced hardship in recent months but the statistics show that the rate of joblessness is decreasing as government subsidies are increasing. Some sectors have experienced rapid growth and are looking for places to invest while the rates are so low.
“Stock is down -46%”
Looking at stock levels, I just can’t see there being a huge influx of new property any time soon; we are currently sitting at -46% from the same time last year. Naturally, with low stock levels and high demand for property, this will continue to push prices upwards. I’ve also found an increase in confidence of sellers to come to market as they are experiencing very low competition on the market which allows for better negotiation on price. Over the last few weeks, we have experienced incredibly high enquiry levels. Online portals have been breaking records week in week out showing that there is activity out there.
I’m optimistic as we move into the next quarter and look forward to sharing this next phase with you. If you would like the full report, just email me at email@example.com.