Ok real estate isn’t warfare, but it is certainly tough for property owners who are trying to work out what the market is doing.
Locally, there is a definite resurgence in first home buyer activity, with the established home sub-$550,000 bracket moving quite healthily (this does not yet extend to apartments).
Homes on their own block are sought after and selling well, particularly character homes that are well maintained, and modern 4×2 family homes.
Apartments of any description are good buying and can often be obtained below replacement cost.
Vacancy rates are low and rents are on the rise.
Poorly presented properties struggle to sell, with the Buyer pool being, on the whole, owner occupiers who want ready-to-live-in homes.
Investors are few and far between but the canny operators are back in the market sniffing around, understanding “it is time to buy”.
Activity-wise it is ramping up, by our standard we had a slow February (still in the top 30 Agents in WA), but already in the first 2 weeks of March we have done the same number of transactions!
Buyer numbers at opens are exceptionally good and bode well for future sales.
For me this simple metric of high home open numbers and low sales figures means Buyers are waiting for a cue to buy. What will actualise this demand? Honestly I am not sure even the Buyers themselves know!
The answer is always sentiment. Positivity. And Western Australia is about the only place in the country that has a sniff of that.
Stay tuned for more updates in what will prove to be an interesting marketplace this year as we weather the uncertainty of a Federal election.
Derek Baston
