For the last few years Perth (and indeed, most of the world!) has seen a drop in the value of the real estate market, but new figures out this month from REIWA are claiming things are on their way up – have we finally bottomed out? What does this mean for prospective buyers?
The "Facts & Figures"
According to REIWA, the Perth property market is on the rise, claiming the “median house price increased by nearly two per cent in the three months to December 2016”, which is the second month in a row house prices have lifted. The data on their website has shown the number of properties listed is also declining, indicating supply may have peaked.
If there are fewer listings that will mean less competition for sellers, putting them back in control of the market and prices are likely to rise again.
So, REIWA are recommending right now is the perfect time to buy whilst there is less buyer competition and house prices are low, but on the rise. Great news, right?!
Well, whilst this IS great news for potential buyers, we’re taking this advice with a grain of salt and a big ‘ol warning – do your research first.
Research is key
One of the most important things to understand in real estate is that the numbers can be tweaked to suit, and it’s incredibly important to do suburb specific research before you just take ‘expert advice’ at face value.
In this particularly example, it’s important to know that Perth doesn’t operate as one unified market, and each suburb is unique in terms of its own property value trends.
There are a few factors that may have influenced the data readings for the market, and generalising this information by applying it to the whole metropolitan area is unwise.
For example, one area might be experiencing acceleration in the appreciation of property value where others may still be on the steady decline, but when taken together the data is overall positive. Or, a couple of high priced properties may have sold well above their value expectation for the city, providing a shift in the overall recorded data for the time period.
In short, you need to dive deeper into specific market behaviour to gain a better understanding of how it may impact your purchase decisions. Just because the ‘experts’ are pointing towards a positive shift in property prices and urging action, it does not mean this data is accurate for where YOU are looking to buy.
Take the time to conduct your own research and educate yourself on the property trends of the suburbs that you are interested in and their surrounds before making a decision – a few hours out of your day will potentially save you thousands of dollars in the long run.
A good place to start is by downloading our eBook, 9 quick research tips for purchasing property.
Download our eBook here.
In addition to getting the right property at the right price, it's just as important to work out how much you can afford to spend – there’s nothing worse than debt you can’t afford to have! Sitting down with a broker is a good way to sort through your finances and get yourself on track.
We can also recommend our Money Management Program, a deceptively simple program designed to help you save more and pay off your mortgage in half the time… aka pay half as much interest.
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