PROPERTY REPORT JUNE 2015
Contents State of the Property Market 1 Market Statistics March Quarter 2015 2/3 Bespoke Finance Update 3 Help! We’ve got ants! 4
STATE OF THE PROPERTY MARKET BY ALAN BOURKE When the going gets tough, the tough get going The housing market in the Eastern states is booming, but looking at WA’s numbers, it appears to be a bit of a bad news show. Perth’s median prices are down from $550,000 to $535,000, stock levels are increasing (14,329 homes for sale at the time of writing, compared to 10,179 same time last year). Yet less sales are happening, which of course affects the number of days the average house sits on the market. Depressing? Perhaps, but every coin has a flip side. Great buys can be found in this market and while you may not receive your dream figure for the property you’re selling, your cheeky offer on the next one might just be accepted. When times are tougher, it’s important you strategise effectively with your agent. Your marketing budget will likely increase due to the time your property sits on the market. Property presentation, such as home staging, is vital to push some homes in front of their competition. Auction is becoming a popular method of sale for those wanting to sell quickly rather than obtaining the premium price. REIWA statistics show auction properties are selling on average in 26 days – considerably quicker than the private treaty homes that average 68 days on the market. It’s not all bad news While falling iron ore prices and its negative economic impact affect buyer confidence, an important reason for the real estate slow-down is the lower overseas migration to Perth. Compared to last year, approximately 20,000 less people made the move to WA. So while Perth’s population still grew 2.2%, it was down 1% on the previous twelve months. This slowed demand for housing and, as a result, pushed stock levels up. But it’s not all bad news. The real estate market has, and always will, fluctuate from a market favouring sellers to one favouring buyers. And with the latest Reserve Bank rate cut decreasing interest rates to a historic low, we may well see some interesting action in the market in the next couple of months. A market such as ours demands an experienced agent with innovative ideas. If you’re thinking of selling, talk to the experts at Bourkes on 9474 2000 to find out how we can help you succeed.