Residential reset upon reopening of borders
The state’s strong economy and affordability factors have contributed to an optimistic outlook for the West Australian property market, with sentiment among buyers, sellers and investors remaining positive, according to the managing director and founder of Realmark, John Percudani.
In this latest edition of West Real Estate for the year, Mr. Percudani provides a portrait of 2021 and an analysis of the residential market for 2022.
As we move forward into 2022, price growth appears to continue – albeit at a moderate pace – while the affordability of WA homes remains attractive compared to other major Australian urban centers.
Registration levels remain low and the prospect of increased demand from buyers and tenants is looming with the normalization of borders.
“With more active and knowledgeable buyers in the market and prices remaining positive, this summer is a good time to sell with Realmark,” said Mr. Percudani.
The CoreLogic housing market update for December indicated a slowdown in housing price growth for WA as conditions created by firm state border closures impacted listing levels and population growth. This led to a slight increase in days on the market, from 14 days in April to 24 days in November.
“We are confident that once state borders reopen on February 5, 2022, WA is expected to see the residential market reset as interstate migration resumes, driven by demands for lifestyle and employment,” Mr. Percudani said.
Home values in Perth only rose 0.4% in the three months to November 2021, up from 7.7% in March 2021.
“With the consolidation in value, potential sellers have increased the equity in their current property, which is encouraging and allows homeowners to consider upgrading and buying a new home this summer,” Mr. Percudani.
The upward trend in house prices has followed several cuts in cash rates, an increase in positive market sentiment and a slight increase in employment, especially in the mining and agricultural sectors of the WAW.
WA has seen fewer interruptions to economic growth due to COVID-19 than other states and territories, and for this reason the unemployment rate tends to be below the decade average at 3.9% – Australia’s second lowest behind Darwin, according to additional data from December. from CoreLogic.
“At Realmark, we’re often asked if summer is the right time to sell a home – there are more active buyers during the summer selling season,” said Percudani.
“We know that with an increase in the number of competing buyers, our sellers benefit from a better sale price for their property.
While WA homes present exceptional value, consumer trends slowly shifted in 2021 with renewed demand for higher density options, including apartments, villas and townhouses, especially those with many amenities. equipment or an exceptional location.
Affordability remains the primary driver of this trend, with units and townhouses becoming increasingly affordable. CoreLogic data revealed that coastal and lifestyle locations saw the highest annual growth rate in Washington state, with owners looking for a better location.
Mr. Percudani suggested that sellers of these different types of properties should consider putting their properties on the market and taking advantage of the summer selling conditions.
“A word of caution for sellers, it’s important not to always jump to the first offer,” he said.
“Make sure your property isn’t going through a quick sell approach, as the data indicates that properties that are sold off-market or opened for the first time may risk a lower sale price.
“It’s about making a smart sale, not just a quick sale. “
In the first edition for 2022, West Real Estate will delve into market forecasts for the coming year from a number of WA industry leaders. Watch for this special report in the January 1 edition of the newspaper.