Perth’s residential market is seemingly an unstoppable force, with no end in sight to its ceaseless price grind upward, ever upward.
Record high prices – a median house price now for the first time over $1,000,000.
Record low stock levels.
Demand is still high, particularly in the bottom half of the market, as affordability really starts to bite.
Local investor activity is growing, as existing home owners start to tap their new stores of home equity.
And despite the ceaseless price growth, federal government incentives, like the First Home Buyers’ Guarantee, have put even more fuel on the fire of Buyer demand up to $850,000.
BUT real wages aren’t keeping up, so it seems an affordability / serviceability squeeze is imminent.
Property pundits expect potential slowing of growth in the back half of this year.
Let’s see what happens!
Right now population in Perth continues to grow, and the banks continue to lend.
In the short term at least, the supply/demand disconnect is so out of whack that Buyers are in a continuous state of FOMO, missing out on homes week in, week out.
This continues to drive price growth.
If you need to buy, be aggressive.
Or miss out.
If you want to sell, now is an amazing time to realise value.
We do indeed live in interesting times.
Derek Baston
0417 99 23 24
