Welcome to our market wrap for October. Another month in the books and still confused about where the market is headed into 2023.
More conflicting media reports and another interest rate rise, but this time we are hearing of a slowdown in rates. It’s coming. Certainly good news, but we should expect a few more rate rises before they stop altogether.
Like I said last month, the Perth property market is a standalone market, and we are still yet to experience any real negative impact on prices with only a 0.4 % decline through October.
So the Perth market is showing resilience.
Begs the question, if the Perth market can hold up from now to the point that rate rises stop, do we get another growth spurt?
Lots of variables in this equation, but my opinion, all things being equal, is another round of growth is likely.
But I have no calls on how much growth occurs or how long it goes for yet. Why do I think this? Our other key market drivers are still strong.
Stock is still low. Vacancy rate has dipped 0.7 %, unemployment, only 3.5 %, more population growth, affordability remains high, and more East Coast investment is hitting WA.
Across to the city of Melbourne. Despite some stock hitting the market this month, there’s still an overall shortage, and this is propping up prices nicely.
It’s taken a little longer to sell some properties, but overall, still has a seller’s market feel. I think it will be a mad dash to the finish line this year.
Many buyers are looking to head into the Chrissy Break, knowing their plans for 2023 are locked away.
Thanks, everyone. I look forward to updating you next month.