Perth real estate has made a fast recovery from the April slowdown, where people were staying home, not sure where things were going and “waiting to see”.
As with so many uncertain periods, many tend to put off making decisions until they get a picture of what might be the way forward.
Well, Perth buyers have come out with their conclusion that it’s OK to take a few steps forward and resume where they left off before the Covid-19 stay-at-home.
So, who is stepping up to buy property?
Shoppers in the market are spanning all price brackets, with properties most affordable they have been for more than 10 years.
Home buyers see this as a way to get in while properties are their most affordable in more than 10 years, with interest rates at a record low.
We have high-end buyers seeing it as a once-off chance to get their forever home, while first home buyers who previously felt destined to stay in the rent trap are now qualifying for their home ownership dream.
We also have investors, who are seeing long term value and going for quality locations that previously their budgets could not afford.
This will set them up well for the future because quality locations not only have better potential for long term gains, they also tend to attract a better category of tenant, who typically will look after the property with more care.
Number of sales
How is this translating onto sales?
After just 11 days into May, the number of property sales already exceeded the total number of sales for the whole of April 2020.
And for the latest week to 10 May, a total of 527 properties sold, compared with 258 four weeks ago. That more than double!
This is great news for the market because it shows that buyers have the confidence to continue buying Perth homes.
The number is even higher than the same week last year, when there were no coronavirus concerns.
Number of listings
Listings are still going down and currently sit at 11,611, which is 663 fewer than 4 weeks ago.
This means effectively, no new properties came on the market to replace those sold. It’s also nearly 5,000 less that same time last year.
If the number of buyers remains the same, this translates to more buyers competing for each property. This is good for the sellers right now because it helps support the values of people’s homes.
It is also good for buyers because supporting values is important for all market participants.
Number of rentals
The same pattern followed with rentals, where rental numbers for the first 11 days of May topped the whole of April’s total, signalling a return to normal.
Property managers are reporting that they are receiving booking for rental opens, with applications at similar rental levels to earlier in the year.
Where to from here?
Earlier this year, before the Covid-19 crisis, Perth was showing good signs of commencing an up-trend. There had been pent-up demand, rentals vacancies were down, rentals had started increasing and sakes prices were also just starting to turn upwards.
With the market holding up and showing signs of strength, the good performance to date is a cautious indicator that confidence may return and get the market back on track sooner than expected.
If you have any questions about the Perth property market, please call us on 08·9381·7450 or enquire here.
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