Let’s be honest… The Perth market is really confusing right now.
Turning on Channel 7 news or Today Tonight and all they are reporting is “the market is going down down down” and “this isn’t the worst of it yet”.
However, when we take a step back and remember that Perth is a very wide spread city, with all different areas, hosting different market perceptions, it is easy to see how the media can manipulate and magnify statistics that may only be affecting a certain segment and in Perth’s case this is inner metro areas. These statistics weigh down on the overall statistics of the wider spread Perth metro area and therefore, immerging are negative reports that assume the entire city is still struggling.
Perth has significantly dropped in the amount of stock we have available with REIWA.COM reporting 14,257 homes for sale this time last month and now 13,585 homes for sale now (data taken from the 12th of August 2018 – Current). However, this time last year stock levels were quite the same with a report of 13,336 homes for sale in 2017. The sales are up in Perth however with 516 Sales being recorded during the same week compared to last year 482 sales which is great signs that the Perth market is in its stabilizing faze – Now we just need more buyers to realise the amazing buying opportunity currently at their fingertips.
I get so many people emailing me asking, WHY! They read my reports that the market is improving and then turn on the news only to see the opposite, more negative reports. Well, my strong advice for anyone reading this over the various Perth suburbs is to get your advice locally and ask for some statistics of YOUR suburb not Perth in general. For example, Mosman Park (the area I do most of my business) houses have grown a total of 7.4% YTD which is why I am reporting to our locals that things are looking up.
For investors, the rental market also seems to be stabilising with more people slowly returning to Perth. This time last year there were 10,055 properties reported as available to rent compared to this year 7,511 that is a drop of 25% which is absolutely massive! There were 1,011 properties rented out this week last year as compared to this year 1,065 which even despite a slightly smaller number you can see we are leasing more properties with 20% less stock. Again, good signs for the Perth market.
5 Tips for Sellers
– Fix the small things around the home before selling to help achieve maximum value
– Always invest as much as you can in the marketing of your home! Less is not best.
– De-clutter and simplify your home as much as possible, remember everyone has different standards so consider using a friend to tell you if your home is too cluttered
– Be very clear with your agent with anything about your house and land that may impede on the sale of your home. Honesty is the best policy and you do not want your sale falling through due to something you tried to sweep under the rug.
– Choose a community-based agent that gives back, keep a close eye out for those agents who are giving back to the area you live in and not just taking for themselves.
5 Tips for Buyers
– Know what you can afford before looking. Ask for a trusted bank manager or mortgage broker and have a meeting. Don’t waste your time looking at properties you cannot afford as it can lead to being confused and being extremely overwhelmed with the entire buying process.
– If you are considering multiple suburbs to purchase in, make sure you get your individual statistics of each suburb as some suburbs you may find have increased in value and not decreased.
– Never be afraid to ask questions, the only dumb question is the one you don’t ask! Make sure you read your contract and take your time. Remember it’s a really big decision and any professional agent should never rush you.
– Always be upfront with your intentions to allow an agent to help you in the most professional manner. If you are just researching and not ready just be honest and an agent should offer you information rather than asking you to buy. If you are ready to buy but just need to see some more comparable properties, then also mention this as there may be some off-market opportunities you can view. The more honest you are the better you can be served rather than just trying to keep your cards close to your chest and make people play a guessing game.
– When buying strata, always request documents such as minutes, financials and strata plans to make sure there are no hidden nasties when buying into a strata complex. If you need help going through the document, then ask for 10 minutes to be taken through it.