Realmark was founded in Perth in 1989, and Mr Percudani said the current climate is somewhat reminiscent to what the business endured in its early years.
“At the end of the heady period of the 1980s, the Australian economy was overloaded in a number of ways,” he said.
“The pressure of the excesses of the previous decade, high interest rates, entrenched inflation, deregulation in mortgage rates, combined simultaneously with a global slowing economy saw Australia enter a period of recession.”
Now well into its fourth decade, Realmark will draw upon this extensive experience and look to navigate and guide its clients to prosper through a changing market.
The avoidance of underselling or under renting is a key focus in every transaction handled by Realmark
“With rising inflation, increased borrowing costs, rising energy costs, and instability in both politics and economies across the globe we are looking at somewhat similar conditions to those we faced when Realmark was founded,” said Mr Percudani.
“Our experience through multiple cycles over the last 30 years has taught us that property remains a highly attractive investment.”
Mr Percudani said a relentless focus on the local West Australian market, combined with high-level expertise and experience across Realmark’s network of businesses will put its clients in an optimal position to achieve its goals.
“Interest rates may be rising, but they are still coming off historical lows in what remains an affordable and desirable market in which to work and live,” he said.
“In Perth, and across WA, we have learnt it is not unusual for the property market to be counter-cyclical to the eastern markets, which dominate the headlines.
“Affordability, moderating demand and supply combined with good underlying economic and sentiment factors suggest a different outlook may be on the horizon for WA property.”
After more than 20 years of analysing national housing trends, CoreLogic’s Asia-Pacific Research Director Tim Lawless said the biggest difference between the current housing market conditions and the early 1990s is the level of debt households are carrying.
CoreLogic’s home value index shows Perth housing values were down only 0.7% at the end of October, since the city peaked in July. Comparably, Sydney has recorded a 10.2% drop in values and Melbourne has experienced a 6.4% decline, after both capital city markets peaked earlier in 2022.
Mr Lawless said Perth’s subtle slide in home values follows a 25.9% rise in housing values through the recent upswing.
“In 1990 the household debt to income ratio was almost two thirds lower than it is now, highlighting households of today are more sensitive to changes in the cost of debt,” he said.
“As interest rates rise, home buyers are likely to become more price sensitive. Perth’s housing prices are the lowest of any state capital, so the sheer affordability of the local market should help to insulate the market from significant falls."
