The Spring selling season has arrived, and the Western Australian property market is poised for a critical period, raising the question: Will Spring in 2024 deliver the results we've traditionally seen?
Historically, this season has been characterized by a surge in listings, increased buyer activity, and a general boost in market momentum.
According to CoreLogic data, Perth has seen an average increase in sales by 6.2% driven by an average increase in listings of 16.5% over the last decade.
However, with 2024's unique economic conditions, the outlook remains uncertain.
John Percudani, managing director at Realmark, offered his perspective on what property buyers and sellers in WA might expect this Spring.
“Western Australia’s property market has always had its own rhythm,” he said.
“While significant, the increase in activity we have seen in WA is less than the national average, with those figures driven by east coast capitals with cooler climates.
“This year, we’re seeing a unique convergence of factors that could influence the Spring season’s performance.”
The Spring selling season is expected to be shaped by several key economic variables.
Interest rates, which have stabilized somewhat, continue to be a significant influence on buyer confidence and borrowing capacity.
“While the broader Australian market is experiencing caution, Western Australian buyers are demonstrating a savvy approach, seeking out value and long-term investment potential.”
Western Australia's economy, bolstered by the resources sector, provides a degree of stability that other regions may not enjoy.
However, the state government's housing policies and incentives could alter the traditional dynamics, requiring sellers to adjust their expectations.
Despite this, inventory levels have remained tight throughout 2024, exerting upward pressure on prices.
“There may be a modest increase in listings as sellers look to capitalise on current price levels, it is unlikely that the market will see the high stock levels typical of past seasons,” said Mr Percudani.
“Sellers need to be strategic in how they position their properties, and buyers need to be clear on their priorities. This Spring, more than ever, success in the property market will come down to informed decisions and realistic expectations.
“I recommend talking to an agent with a deep understanding of the nuances of the local market who can capitalise on any increase in activity the seasonal change may present.”
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