1. Stable Interest Rates Amid External Economic Pressures
The Reserve Bank of Australia has opted to keep interest rates steady at 4.10% even in light of challenges including the downturn in China. This decision provides sellers with a stable economic backdrop amidst local high inflation.
2. Demand Outstripping Supply: A Seller’s Market
A shortage of property listings has intensified the competition among buyers. It’s not uncommon for me to witness up to 30 eager buyers at a single home open, many of whom are prepared to bid well above the asking price.
3. High Buyer Demand Means Faster Sales
My phone has been ringing off the hook with potential buyers trying to navigate our current market with many of them asking to be prioritised. This high level of interest means properties are likely to sell quicker and at competitive prices.
4. Consistent Market Growth Indicates Strength
With a 5% upswing since the year’s outset and a 4.7% increase in median house prices from last year in Perth, it’s clear the market is on an upward trajectory.
5. Higher Potential Returns for Sellers
In this thriving market, sellers are enjoying exceptional returns, with some seeing an average profit rise of around $46,000 on their Perth properties.
6. Investors Selling, Further Straining the Rental Market
Many investors are choosing to sell, capitalising on the current market conditions while avoiding inflated mortgage repayments. This move further depletes the rental pool, putting additional pressure on potential tenants and encouraging homeownership. In fact, I’m assisting families in finding alternative rentals, even though they often face an increased weekly rent by up to a hundred dollars.
7. Rental Vacancies at Historic Lows Spur Buying Intent
With rental vacancies diving to a mere 0.9% from the usual 3%, there’s a heightened demand for properties. The mix of steep rents and limited rental options is prompting individuals to favour buying over renting. As investors take advantage of the market conditions and offload their properties, the scarcity in rentals tightens even further, compelling more individuals towards homeownership.
Tap into the Southern Suburbs’ Potential
The southern suburbs, particularly Canning Vale, are prime territories in this sellers’ market. The median house price in Canning Vale has risen by 8.8% over the year, touching $690,000. Over the last five years, there’s been a commendable compound growth rate of 8.5% for houses.
If you’re considering selling or need genuine insights into the market’s direction, don’t hesitate to get in touch.