Market Reports

Bruce’s Market Roundup – January 2017

Happy New Year! 

Like most of you, I am happy to say that the slowest Perth real estate market in memory is now finally behind us. Last year will be remembered as a challenging experience for the industry.

The slow market of 2016 was associated with a weakened economy, job insecurity and low consumer confidence, with 2017 predicted to show some recovery and the emergence of some interesting trends.

Finally some good news for investors! Rising from the bottom of the cycle, the median house price rose by nearly 2% to $535,000 in the three months to December 2016 offering a more positive outlook for 2017.

Increased Affordability for First Homebuyers

Government has introduced a temporary $5000 boost to the First Homeowner Grant. First homeowners will now receive a $15,000 grant when purchasing or constructing a new property between January 1 and December 31 this year, creating more affordable options in a market that already provides many benefits for first home buyers.

Apartment Living – a popular lifestyle choice

We saw an oversupply of apartment living options in 2016 which is expected to ease in 2017. Fewer building approvals over the last 18 months and a heightened consumer demand will breathe life back into the apartment sector. More centralised apartment living is also set to increase in coming years as further developments are planned and constructed around the fringe of the Perth CBD with new café/restaurant strips following suit.

For any extra information if you’re thinking of selling, or if you’d like a second opinion, feel free to call me on 9328 2345 or 0419 965 137 any time. I can help.

Bruce Reynolds


Bruce’s Tips

In the current market conditions and looking at how these are predicted to change in 2017, my recommendations to this year’s buyers and sellers are:

Sellers

If you are looking to sell in early 2017, it is important that you find the best agent you can to move your property in this inhospitable market. Rather than just looking for an agent who promises you top dollar, an agent who is aware of the current market conditions and is willing to work strategically market your property is the one you want to deal with.

Buyers

Luckily, buyers can afford to be choosey in this market, which increases their power to negotiate. My advice for buyers is to not be distracted by picking up the cheapest bargain you can find. Instead, consider location and the quality of the property as key drivers for decision making, as properties with these attributes will pay off in the long term.

As the market has started to turn, I would suggest making your move within the next few months to really take advantage of low house prices. If you’re looking to invest in an apartment, strike while supply and choice is hot before prices start to increase.


To sell or not to sell… 5 points to consider

So you’re teetering on the edge of a decision to sell your property… Have you asked yourself why you actually want to sell or closely examined your motivations? Here are 5 points to take into consideration when making your decision.

1. Financial Reasons

Sometimes there is a financial need to sell a property. While unfortunate, this is one of the most important reasons to sell, and best addressed early before you go too far down the cycle of debt.

Maybe you lost a job, separated from a partner, or simply over-committed yourself without realising. It’s often heartbreaking when your hand is forced, and you have to give up the dream you’ve no doubt worked very hard to achieve, but financial reasons for selling can also be very positive – often vendors are cashing in on years of capital growth and improvements by selling, placing them in a great position to take advantage of a move up the property ladder.

2. Have you outgrown it, or has it outgrown you?

Sometimes you’ve simply outgrown your current property. Too many kids? Too much stuff? If you don’t want to do a renovation or potentially over-capitalise on a small house, it could be time to sell up and move on to something bigger.

On the flipside, maybe your house has outgrown your needs. You could be rattling around in the family home, the kids have flown the nest and you want to free up some money by downsizing.

Different properties are for different times in your life. Being in the wrong house at the wrong time is a very good lifestyle reason to sell up and move on.

3. The market is in your favour to sell

A strong market is often a good time to downsize, or buy a property of lesser value to your existing property.

A strong market is also an opportune time to sell if your home has some negative aspects such as being on a main road, has a train line at the back fence, or is in any way unusual or out of the ordinary, or on an unattractive block. If there are less properties on the market buyers can often be less picky, and may be more forgiving of any flaws in what’s on offer.

A slower market is conducive to buying a more expensive property or upsizing. That’s because there will potentially be a smaller gap in price between the two properties.

4. Change is in the air

Maybe you bought the home thinking you could change it, but you can’t. Perhaps you’ve changed jobs or moved offices and are sick of the long commute.

Or maybe change is coming to your neighbourhood – is it on the up or down? Are the neighbours changing, knocking down and rebuilding, or is the streetscape changing? Are there big plans for infrastructure or services that will affect your property – for better or worse? These changes may not be what you want, be someone else may embrace this change and it may be exactly what they are looking for.

Maybe the area no longer suits you (eg your kids have left the local school), or the grass looks much greener elsewhere and you’re looking for a lifestyle change.

5. It’s the right time for you

Buying and selling property is a very personal decision. Ultimately, while there are better and worse times to sell or buy a property – it comes down to what suits you, your lifestyle, finances, and plans.

When you balance up all the pros and cons, practicalities and emotions, if it’s the right time to leave, for whatever reason, then it’s probably a good time to sell.

If you want to have a one-on-one discussion about the property market in your suburb, contact us to arrange an appointment.


News just in: WA features in Australia’s Top 20 suburbs of highest median value

Across the nation, 437 suburbs have made it into the CoreLogic RP Data “Million Dollar Club*”, representing an increase of 23.1% from the previous year.

In their list of Australia’s Top 20 most expensive suburbs, CoreLogic RP Data results show that Sydney suburbs clearly dominate, accounting for 17 of the 20 most expensive suburbs. In WA, Peppermint Grove sits sixth on the list with a median house value of $3,504,996. Dalkeith is number twenty on the list with a median house value of $2,470,530.

* To qualify for ranking as a million-dollar-suburb, each suburb had to achieve a minimum of 10 sales over the past year.


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