Spring has arrived, and with the sun out, gardens in full bloom and more buyers actively seeking a change, it’s traditionally considered the best time to list.
However, in an interview with The West Australian, Realmark managing John Percudani has warned that the highly competitive market Perth has seen over the winter months will remain throughout Spring and into Summer.
“Right now, the Western Australian property market is grappling with a severe imbalance between supply and demand,” he said.
“Factors such as strong population growth, job security, relative housing affordability and inflation are keeping buyer and tenant demand high, even in the face of rising interest rates and tighter lending conditions.
“Conversely, supply is lagging significantly, with less than 4000 houses and apartments for sale, along with an estimated 5000 fewer rental properties compared to last year.
“Recent Federal Government projections suggest WA will need 200,000-250,000 new homes over the next five years so, given these dynamics, competition for new listings will be acute in the coming months.”
Mr Percudani said recent Realmark auctions had met or exceeded market expectations, leaving many unsuccessful bidders still in the hunt for properties.
He went on to explain the “upgrader” segment of the market would remain particularly strong, with buyers leveraging the increased equity in their existing homes to seek a better home or location.
The luxury market would also remain active, with buyer enquiries at unexpected levels due to the limited offerings.
“Generally buyers should be clear in their buying intentions and have the ability to make strong, confident offers,” Mr Percudani said.
“They should be aware that market prices are likely to be consolidated as we move further into spring and summer.”
As for sellers, Mr Percudani re-iterated the importance of agents using a smart sale strategy, for example Realmark’s proven Set Date Sale method.
For the full article, see the Saturday 2 September edition of The West Real Estate.
