IN good news for the property market, the Reserve Bank of Australia kept the cash rate at a record low of 1.5 per cent earlier this month and economists believe the likelihood of rates rising in the remainder of 2017 is low.
Peard Leederville and Mt Lawley sales associate Dean Bradley said the low interest rate climate and competitive lending environment, coupled with current market conditions, offered outstanding opportunities for buyers.
“I don’t think property has been more affordable in the 13 years I’ve been in the industry. I can’t say whether we’ve hit the bottom of the market or not, but I honestly can’t see it heading any further south,” he said.
Mr Bradley said that while property was very affordable, conditions varied from suburb to suburb and between property types, and in some cases buyers needed to act quickly.
“Mt Hawthorn, West Leederville and Wembley are very undersupplied at the moment,” he said.
“These are aspirational areas and the buyer/seller paradigm is fairly even; neither has the upper hand and properties are selling in reasonable timeframes and for good prices.
“For example, supply in Wembley over July/August for homes $800,000 and above was about half of that in 2016, and over the last few weeks I’ve sold residential homes in the $850,000 – $1.6 million price bracket within 30 days, with multiple offers received, using the right process, marketing and presentation.”
Mr Bradley said the balance was different in the local unit and apartment market.
“There is a lot available in this segment of the market and it offers incredibly good value for buyers,” he said.
“They can pick up a well-priced first home, taking advantage of stamp duty concessions or investment; while sales might be slow at the moment, there is still good rental demand.”
With Perth settling into the traditional spring selling season, Mr Bradley offered the following advice for buyers:
n Get organised before you start looking. Make sure you have spoken to a broker and know your financial position so that you are well-placed to make an offer when you find the home you want;
n Speak to an agent active in the area you are looking at. Supply, demand, prices and selling times vary from suburb to suburb. You need to know what conditions you are facing. You don’t want to miss out on a property because you thought you had time to wait to see what else might come onto the market;
n Don’t just focus on one suburb. You do have a lot of choice, so look at neighbouring suburbs where you might get more bang for your buck; and
n Think long term as well as buying for now. Find a property that meets your needs, such as close to amenities, transport, medical facilities, etc, but remember you may want to sell it in the future or even use it as investment. Try to choose a property that will have long-term appeal.