With Perth's vacancy rate reaching a low 0.3% this week and homes going under the hammer at surprisingly good prices I don't think anyone will argue in saying that we are now clearly shifting to a buyers’ market.
Understanding why will help customers as we move forwards.
The past 6 years have been brutal for property investors in WA. With the east coast markets in a frenzy, regulators tightened the restrictions on lending for investment properties. It killed off the building of any investment properties by Mum and Dad investors.
At the same time, Project Builders building first home buyer homes on the outskirts have had to cut staff and material costs to balance the massive overheads. While there has been a demand for new homes from customers with valuation issues many sales have not made it into starts.
These people would have been the first port of call for salespeople when the incentives were announced. Then you have a frenzy of new inquiry due to the perception of free money.
The property market was showing signs of recovery before COVID 19 and things shut down for a few months. This created a backlog. When things opened up it created the perfect storm.
COVID has also changed many people's lifestyle habits. Lack of employment or reduced income has meant that some people cannot sell their homes as they do not have the income to refinance. This has resulted in fewer people able to list their property for sale.
Many Australians returning from overseas to escape COVID are looking for a quieter life at the same time as mining and oil and gas are relocating people to keep operations going.
The under supply of new homes for the past 5 year with the demand for housing suddenly increasing is going to create a major lag. It takes one - two years to get housing stock in established locations on the ground ready to sell.
In addition to this, there is more money circulating in the system with benefits and more people. WA is experiencing a mini Boom.
This is great news if you are looking to sell your home & bad news if you are one of $1000 people stuck in a queue waiting for your house to start.
We have solutions!!!
Avoid the chaos and prosper. If you are looking at building, selling, or subdividing give us a call to chat about how we redefine your path to property success.
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