Perth Real Estate Market Wrap January 2023 Melville with James Priestly, Melville Real Estate Agent

Transcript

Welcome to 2023, everyone. I hope you enjoyed some time off. We’re going to get straight into our first market wrap for the year.

Big questions of where things are headed for Perth. The fact of the matter is, none of us know for sure. However, we can look at what is happening with the key drivers in the market, and hopefully they can give us an indication.

Remember the key drivers, mining, unemployment, population growth, supply demand, affordability, the rental market, and interest rates. Which one of these do you think is having a negative impact on the Perth market now?

Even after 3% of rate rises last year, prices still haven’t had any real decline. So let that sink in. Surely the market was going to decline. A 3% jump in rates in less than a year would have done it.

The problem with that is, all other key drivers are strong, and there’s the shortage of stock to go with it. So what’s the likely outcome? I think it suggests Perth market will at least hold ground for 2023.

REIWA is actually forecasting 5 % growth for the year. Now, the RBA won’t meet till Feb. It’ll be interesting to see what happens there.

Data released from November indicates headline inflation has already declined. And if that trend holds, I don’t expect many more rate rises this year. So then the case for Perth looks very good.

Across the city of Melbourne, still a shortage of stock and a new way of buying the market, adding to the left over guys from 2022.

What we are seeing now, though, is a bit of a divide between the top properties versus those that are in need of work or on busier roads.

Buyers are typically expecting discounts on prices for those properties while the good ones are still selling well.

Thanks, everyone. I look forward to seeing you in February