Has the Perth Market Peaked? By Hasi K
It appears that the Perth property market may have reached its peak, or at the very least, is stabilising. Over the past couple of years, we’ve seen strong growth in property values, fuelled by high demand and a supply shortage. However, recent numbers through home opens and buyer sentiment indicate a slowing pace, with fewer buyer agents actively pursuing purchases in Perth. Instead, some agents are diversifying their efforts, focusing on other markets like Melbourne, where opportunities may be perceived as more varied.
Interstate Buyers Slowing Down
The reduced activity from buyer agents reflects a shift in the market’s dynamics. As Perth’s prices climbed, affordability concerns have made it challenging for investors to find attractive deals. This change has slowed down the aggressive purchasing patterns we saw earlier, indicating that agents are becoming more cautious, anticipating either a stabilization or a softening of prices in the months ahead.
First Home Buyers Waiting for an Opportunity
Despite the cooling market sentiment from buyer agents and of state investors, there is still strong interest from first-home buyers. Vacancy rates have recently increased, reflecting some loosening in the rental market. Even so, many first-time buyers are keen to enter the market rather than continue paying higher rents. With rising rents across Perth, the appeal of owning a home remains strong. These buyers are essentially waiting for the right moment to jump in—ideally when conditions align to improve affordability.
The Impact of Interest Rate Adjustments
Interest rates remain a critical factor. If rates start to decline, it could significantly impact buyer sentiment and affordability. Lower rates mean that mortgages become more manageable, encouraging first-home buyers to make their move. This influx of new buyers could stimulate the market and ensure the market remains positive. It’s an important factor to watch as any rate decrease could act as a catalyst, bringing more activity and maintaining steady property prices.
Maintaining the Status Quo
While rapid growth may no longer be on the horizon for Perth’s real estate market, the outlook remains positive. Even with a possible slowdown, we aim to maintain the status quo, ensuring a stable market where property values remain consistent. The combination of new buyers entering and existing homeowners holding onto their properties should create a balanced environment where supply and demand find equilibrium.
If you’re considering buying or selling, this may be an ideal time to explore your options. For a more personalised market update or a property appraisal, feel free to get in touch.
Hasi 'K'
Helping the local community since 2005
M: 0433 425 844