by Damian Collins – REIWA President https://reiwa.com.au/
Perth homebuyers remain the beneficiary of the local property market, but with signs indicating a recovery is on the horizon, the favourable conditions that currently prevail won’t last forever and buyers should act soon if they want to secure a home at current prices.
Last week, REIWA data partner, CoreLogic, released the national home value index results for September which showed that while house values in Perth continue to soften (down 2%), the annual rate of decline has started to ease.
REIWA.com data supports CoreLogic’s findings, with the median house price for September coming in at $505,000, marginally lower (by 1%) than it was the same time in 2017. Comparatively, three years ago the median house price was declining at a more significant pace, recording a 4.2% decline between September 2015 and September 2014. Although prices in Perth remain soft, the rate at which the median price is declining has slowed, which is good news.
Improved affordability in the Perth housing market presents excellent opportunities for first homebuyers to get their foot in the door. This combined with interest rates that remain at record lows, means if you’re in a position to buy, the timing has never been better to secure your dream home.
While Perth buyers are not in danger of the market rapidly accelerating in the next 12 months, there is every chance we will start to see prices strengthen. If you’ve been weighing up whether now is a good time to buy, I’d encourage you to act sooner rather than later.
We are lucky in WA that the dream of homeownership is still attainable. While property markets on the east coast are starting to cool, house prices in major cities like Sydney and Melbourne are still significantly more expensive than in Perth.
The median house value in Sydney sits near $1 million, almost double the price in Perth. You’d be hard pressed to find an affordable home within 10 kilometres of the CBD, but in Perth there is plenty of opportunity to buy below the median house price close to the city, with suburbs like Balga, Westminster, Nollamara, Cloverdale, Redcliffe and Belmont all presenting affordable options.
If you’re not concerned with living close to the city and would prefer to live on the fringe suburbs of Perth metropolitan area, there are even more affordable options, with some properties in the metropolitan area priced as low as $200,000.
If you’re thinking about buying a home or investment property, speak with a local REIWA agent to discuss your options and see what properties are available in your area. You may also wish to speak to a REIWA buyer’s agent, who will be working for you and can help you find the home or investment property you are looking for.