Is the Perth property market in boom or bust?
We all know that Covid-19 has made things unpredictable. Prior to 2020 most property owners in Perth were hoping that prices would start to rebound, and they did.
One of the challenges that West Australian’s returning home faced (and still do) was finding a place to live. That coupled with the boom in commodity prices has brought together a number of very interesting factors affecting the Perth Property market.
The number of days a property is on the market fell sharply in Perth in 2020. In the September quarter the median was just 30 days in comparison to the March quarter of 2019 where it took almost double that at 59 days to sell a home.
In the three months up to November 2020 home sales in Perth were 29% higher than the same period in 2019. That period also saw the highest volume of sales since 2013. (Source REIWA)
The last key statistic to look at is the total number of properties for sale. In the first week of January 2021 Perth had just 8263 houses listed for sale in comparison to 12,413 during the same week in January 2020.
So in a nutshell, on average properties in Perth are selling much faster now than they have since 2016. There are less properties on the market, and there is a higher demand for those that are for sale.
What does that mean for property prices?
In general, higher demand and less availability will most likely drive the property prices up over 2021. However, we need to keep in mind that we are still in the midst of the global Covid-19 uncertainty, and as we have seen with lockdowns around Australia, things can change at any moment.
So, is the Perth property market in boom or bust?
Well, a lot of the signs suggest we are in a period of growth in property values. It may not be a boom (yet) and the world is still very uncertain, but if WA continues to stay Covid free, out of lockdown and the commodity prices remain high the outlook for WA property prices is looking good.
Now more than ever big decisions need to be as well informed as possible. So, if you are in the market to sell your home, we strongly recommend getting an independent valuation on your property by a professional licensed property valuer before you are bombarded with the sales pitches of real estate agents and their guestimations of what they think you may be able to get for your property.
For a quote on a professional valuation on your property fill in the form below, or give us a call on 1800 828 222 for a short, unbiased chat about your biggest asset.