Interest rates and the Perth property market

Real Estate Vlog Episode 1 with James Priestly, Melville Real Estate Agent

Transcription

Hi, guys. I’m James from MGP Property.

This year, we decided to do things a little bit differently.

We’re going to introduce a series of blogs to help answer some of the questions and concerns we keep hearing about in the market.

Now, first topic conversation has to be interest rates.

It’s the narrative we keep hearing about in the media, but there’s so much misunderstanding about what it really means for the Perth property market.

Common misconception of buyers and sellers is that when interest rates rise, property prices must fall. But there’s so many more factors to consider:

• Where is unemployment at?
• Is the population growing?
• How is mining doing?

And in WA, it’s all going well. Why don’t we give it some more context?

WA is still the most affordable state for housing.

In 2012, the reserve bank rate was 4%, and we thought this was low.

Mining in WA is still growing. And I think what you’ll find is mining is going to have a greater impact on prices in Perth than a few small interest rate rises ever will.

If you are thinking about buying or selling property, it’s not about timing the market, it’s about time in the market.

If you want the benefits from the property market, think long term before you act to the narrative in the media.