Perth and City of Melville Real Estate Market Wrap
After a short winter break, it’s good to be back on deck with our market wrap for August 2023. What an interesting year it has been for Perth! I remember back in January this year, there were plenty of doom and gloom predictions for our local housing market. The problem with this was, they were mostly based on the view that rising interest rates would send property prices down. However, if you have been reading my blogs or watching my vlogs throughout the year, you would know there’s far more to the market than just rising or falling interest rates.
Fuelled by a strong state economy, low unemployment rates, strong interstate and international migration, a tight rental market, strong demand and ever declining supply, the Perth real estate market remains strong. Since March, we have had 6 consecutive month-on-month price increases taking Perth to all time high prices (as at August 2023), and meanwhile remaining one of the most affordable capital cities. This is a huge element when considering what is to come next and this is one of the factors that tells us, Perth is still undervalued compared to other cities.
Inflation looks to be under control for now and we saw the RBA hold rates for the 3rd consecutive month. They have left the door open for more rate rises this year, but I think this is really just a pre-emptive statement to counter any possible future backlash if they do raise rates again.
So, what’s in store for the rest of the year and what happens when we see homeowners transitioning off those low fixed-rate mortgages? Sure, there will be some more sellers as a result, but with the rental market not attractive to enter into right now, a lot of these sellers are still going to be buyers, maybe just in different price brackets. Maybe we get a little uptick in stock, but this is likely to be offset by additional demand, and as a result, prices are likely to continue the current steady upwards trajectory. There is not likely going to be a huge change in the volume of available listings.
Our local markets are no different to the wider Perth market, with property listings significantly low and demand showing no signs of waning. This will most likely continue to drive steady price growth and like we are seeing now, most reasonably priced listings will continue to sell in first week or two, with more often than not, multiple offers.
Presentation of your property is of utmost importance and there still a large divide for properties that aren’t presented well to market vs those that are. Sales strategy, pricing strategy and marketing are also critical if you want a top result. Those who don’t get this right can risk being exposed to longer sales campaigns and potential price reductions.
I look forward to updating you again next month.
If you’re curious about the value of your property in this market, you can refer to our online price guide form here.
Or, for more personalised assistance, please call me on 0447 120 125 or email james@mgpproperty.com.au.
