Bruce’s Market Roundup – January 2017
Happy New Year!
Like most of you, I am happy to say that the slowest Perth real estate market in memory is now finally behind us. Last year will be remembered as a challenging experience for the industry.
The slow market of 2016 was associated with a weakened economy, job insecurity and low consumer confidence, with 2017 predicted to show some recovery and the emergence of some interesting trends.
Finally some good news for investors! Rising from the bottom of the cycle, the median house price rose by nearly 2% to $535,000 in the three months to December 2016 offering a more positive outlook for 2017.
Increased Affordability for First Homebuyers
Government has introduced a temporary $5000 boost to the First Homeowner Grant. First homeowners will now receive a $15,000 grant when purchasing or constructing a new property between January 1 and December 31 this year, creating more affordable options in a market that already provides many benefits for first home buyers.
Apartment Living – a popular lifestyle choice
We saw an oversupply of apartment living options in 2016 which is expected to ease in 2017. Fewer building approvals over the last 18 months and a heightened consumer demand will breathe life back into the apartment sector. More centralised apartment living is also set to increase in coming years as further developments are planned and constructed around the fringe of the Perth CBD with new café/restaurant strips following suit.
For any extra information if you’re thinking of selling, or if you’d like a second opinion, feel free to call me on 9328 2345 or 0419 965 137 any time. I can help.
In the current market conditions and looking at how these are predicted to change in 2017, my recommendations to this year’s buyers and sellers are:
If you are looking to sell in early 2017, it is important that you find the best agent you can to move your property in this inhospitable market. Rather than just looking for an agent who promises you top dollar, an agent who is aware of the current market conditions and is willing to work strategically market your property is the one you want to deal with.
Luckily, buyers can afford to be choosey in this market, which increases their power to negotiate. My advice for buyers is to not be distracted by picking up the cheapest bargain you can find. Instead, consider location and the quality of the property as key drivers for decision making, as properties with these attributes will pay off in the long term.
As the market has started to turn, I would suggest making your move within the next few months to really take advantage of low house prices. If you’re looking to invest in an apartment, strike while supply and choice is hot before prices start to increase.
Bruce’s Market Roundup – December 2016
What an interesting few weeks for the WA property market!
There has definitely been a change in the air in our economic climate and multiple variables suggest that an upturn is on the horizon. The job market appears to be recovering with a 16.3% increase in Perth-based job advertisements in the past 12 months. It has also been suggested that we can expect an upturn in house and rent prices due to a stabilising supply of properties. A quickly growing population will also force property prices up in coming years due to increased demand and relatively falling supply.
Perth is set to overtake Brisbane as Australia’s 3rd most populated city by the mid 2020’s, growing by approximately 3% a year.
So, what does this mean for you? For first homebuyers or current homeowners in search of a bargain, NOW is the time to enter the market as you will expect to pay less as prices round the bottom of the cycle. This is also a good opportunity for property investors looking for a solid long-term investment.
And the question we’re all asking – how will the US election affect our property market? Although there was a sharp increase in searches for Australian property in the hours and days following the result, investors are likely to wait until the dust clears until any action is taken.
Whatever happens, it seems to all be looking up!
For any extra information if you’re thinking of selling, please feel free to call me on 9328 2345 or 0419 965 137 any time. I can help.
Summer is often considered the best time to sell your home. Why? Firstly, there are more people out and about at home opens as the weather brightens up and people have more spare time as we go into the holiday season. Secondly, houses always seem to present better on a summer day, which tends to positively influence the total volume of interest and calibre of offers.
Here are some tips to create a cool, welcoming space for prospective buyers – even in the height of summer!
Throw the doors open
Welcoming in the Perth sea breeze is a great way to create a cool space. Throw open the doors and windows to generate an inviting flow of air. Or, if it’s a real scorcher, be sure to dial up the air conditioning so that your prospective buyer feels comfortable whilst looking around your home ñ a tidy trick to also increase the time they spend looking around!
Change up your Decor
Although wintery colours such reds, dark blues and blacks create cosiness in winter, it is well worth switching in some neutrally-toned cushions, rugs and decorative objects for your home opens to create the atmosphere of a light, airy and cool space.
Create an experience
Remember, you are not only selling your home but also the positive experiences a buyer will have in your home once they move in. For this reason, it’s often nice to include summery touches such as a table set outside to demonstrate the fabulous entertaining spaces to your potential buyers.
Here at RE/MAX Central, we always aim to create a memorable experience in your home by offering chilled bottled water to all our home open visitors. We find that this offers a sense of comfort and refreshment to all guests and allows them to become more relaxed in your home.
Bruce’s Market Roundup – September 2015
There’s no doubt that property markets exposed to the mining and resources sectors have contracted. Having said that, the RBA interest rate cuts have seen the official cash rate at its lowest recorded level, providing a positive boost in an otherwise lackluster economic environment.
Strong population growth and improving employment rates is however supporting a property market that continues to move forward in our state.
I’ve been interested to watch what is happening in the apartment sector. There’s a lot of speculation in regards to the apartment mix in Perth – some suggest we have a glut whilst some evidence suggests that compared to other capital cities, the percentage of apartment dwellings in Perth is well behind the markets of Sydney, Melbourne and Brisbane. It’s noted that Western Australia’s unit approvals increased by 43 per cent in the 12 months to March 2015.
My thoughts are that we are in transition to a higher take-up of apartment living. The interest in apartment living has never been greater in Perth (According to Urbis, over 4,000 apartments were under construction as at April 2015 with close to 70 per cent already sold).
Could this mean that our beautiful city has finally awoken from its slumber? I’ve never been prouder to see Perth set against a global stage – public art and lush green parks are now a strong feature of our landscape, as are lively laneways, street cafes and small bars. We finally have a sense of urban cool!
Perth has embraced its magnetic global interest and evolved into an excellent quality destination to live, work and play. I believe that this has underpinned a very strong interest in apartment living, explaining why enquiries are actually very high. So now we are spoilt for choice – there is all of a sudden a lot of development scheduled to be available on a similar timeframe. Choice requires discernment.
How does this affect the apartment market?
Well, if you are buying and can’t wait then apartments that are ready to go should be on your shopping list.
If you are thinking of selling, I feel you really should get on the market now, before you are competing with an over supply of fresh-builds.
To sell or not to sell… 5 points to consider
So you’re teetering on the edge of a decision to sell your property… Have you asked yourself why you actually want to sell or closely examined your motivations? Here are 5 points to take into consideration when making your decision.
1. Financial Reasons
Sometimes there is a financial need to sell a property. While unfortunate, this is one of the most important reasons to sell, and best addressed early before you go too far down the cycle of debt.
Maybe you lost a job, separated from a partner, or simply over-committed yourself without realising. It’s often heartbreaking when your hand is forced, and you have to give up the dream you’ve no doubt worked very hard to achieve, but financial reasons for selling can also be very positive – often vendors are cashing in on years of capital growth and improvements by selling, placing them in a great position to take advantage of a move up the property ladder.
2. Have you outgrown it, or has it outgrown you?
Sometimes you’ve simply outgrown your current property. Too many kids? Too much stuff? If you don’t want to do a renovation or potentially over-capitalise on a small house, it could be time to sell up and move on to something bigger.
On the flipside, maybe your house has outgrown your needs. You could be rattling around in the family home, the kids have flown the nest and you want to free up some money by downsizing.
Different properties are for different times in your life. Being in the wrong house at the wrong time is a very good lifestyle reason to sell up and move on.
3. The market is in your favour to sell
A strong market is often a good time to downsize, or buy a property of lesser value to your existing property.
A strong market is also an opportune time to sell if your home has some negative aspects such as being on a main road, has a train line at the back fence, or is in any way unusual or out of the ordinary, or on an unattractive block. If there are less properties on the market buyers can often be less picky, and may be more forgiving of any flaws in what’s on offer.
A slower market is conducive to buying a more expensive property or upsizing. That’s because there will potentially be a smaller gap in price between the two properties.
4. Change is in the air
Maybe you bought the home thinking you could change it, but you can’t. Perhaps you’ve changed jobs or moved offices and are sick of the long commute.
Or maybe change is coming to your neighbourhood – is it on the up or down? Are the neighbours changing, knocking down and rebuilding, or is the streetscape changing? Are there big plans for infrastructure or services that will affect your property – for better or worse? These changes may not be what you want, be someone else may embrace this change and it may be exactly what they are looking for.
Maybe the area no longer suits you (eg your kids have left the local school), or the grass looks much greener elsewhere and you’re looking for a lifestyle change.
5. It’s the right time for you
Buying and selling property is a very personal decision. Ultimately, while there are better and worse times to sell or buy a property – it comes down to what suits you, your lifestyle, finances, and plans.
When you balance up all the pros and cons, practicalities and emotions, if it’s the right time to leave, for whatever reason, then it’s probably a good time to sell.
If you want to have a one-on-one discussion about the property market in your suburb, contact us to arrange an appointment.
News just in: WA features in Australia’s Top 20 suburbs of highest median value
Across the nation, 437 suburbs have made it into the CoreLogic RP Data “Million Dollar Club*”, representing an increase of 23.1% from the previous year.
In their list of Australia’s Top 20 most expensive suburbs, CoreLogic RP Data results show that Sydney suburbs clearly dominate, accounting for 17 of the 20 most expensive suburbs. In WA, Peppermint Grove sits sixth on the list with a median house value of $3,504,996. Dalkeith is number twenty on the list with a median house value of $2,470,530.
* To qualify for ranking as a million-dollar-suburb, each suburb had to achieve a minimum of 10 sales over the past year.
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