15 October 2018
Affordability in Perth’s residential sales market improved during the September 2018 quarter, with house and unit prices softening marginally.
REIWA President Damian Collins said there was excellent opportunity for buyers and investors to take advantage of current market conditions to secure their next home or investment property.
“While the worst of the market downturn appears to be behind us, the results of the September 2018 quarter reveal conditions are favourable for buyers and investors,” Mr Collins said.
Median house and unit price
reiwa.com data shows Perth’s median house price should settle at $505,000 for the September 2018 quarter.
“This is 1.9 per cent lower than the June 2018 quarter median and one per cent lower than last year’s September quarter,” Mr Collins said.
“While quarterly median figures can be more subject to stock composition changes, the fact that the annual change is only one per cent lower suggests that we are at or near the bottom.
“It was a similar story for the unit market, with the median expected to settle at $395,000, which is 1.3 per cent lower than the June 2018 quarter and 2.5 per cent lower than the September 2017 quarter.”
While the overall market experienced a decline in median house price during the quarter, 57 suburbs across the area bucked this trend.
“The top performing suburbs for median house price growth were Swan View, East Cannington, Como, Hillarys and Cottesloe.” Mr Collins said.
“In the unit market, Maylands, Midland, Tuart Hill, Fremantle and Claremont were the suburbs with the strongest price growth.”
There were fewer sales in the September 2018 quarter than there were during the June 2018 quarter.
Mr Collins said reiwa.com data showed 6,428 sales for the quarter, which was 4.9 per cent lower than last quarter.
“It’s not uncommon to experience a decline in sales during the September quarter, with West Australians typically less inclined to search for property during winter. We tend to see activity slow during the winter months before increasing again as the weather warms up,” Mr Collins said.
The share of house sales in Perth has increased, with reiwa.com data showing houses now comprise 74 per cent of all sales, compared to 65 per cent at the same time last year.
Perth’s top selling suburbs for house sales during the September 2018 quarter were Baldivis, Canning Vale, Morley, Dianella and Gosnells, while the suburbs to record the biggest improvement in house sales activity were Cooloongup, The Vines, Alexander Heights, Mirrabooka and Wattle Grove.
“It’s a good time to buy, which is reflected in the fact a higher proportion of houses are now being sold. This shift in the composition of sales (houses, units and land) indicates buyers are more inclined to purchase a house than they might have otherwise been. This can be attributed to housing affordability improving across the metro area, which has made buying a house a more attainable property purchase,” Mr Collins said.
“We’ve also seen an increase in activity between the $350,000 and $500,000 price range during the September quarter, which is pleasing as it indicates first home buyers remain an active component of the Perth market.”
Listings for sale
There were 13,850 properties for sale in Perth at the end of the September 2018 quarter.
Mr Collins said stock levels across the metro area had declined 3.7 per cent during the quarter.
“It’s pleasing that, although there were fewer sales this quarter, listing stock continues to be absorbed.
“This is the third consecutive quarter we’ve seen listings for sale decline, which is a positive step forward in the market’s recovery,” Mr Collins said.
08 October 2018
Almost one in five Aussies are missing out on bargains because they are scared off by auctions.
Source: Real estate insiders
Buyers are throwing great property bargains onto the scrapheap before they have even seen them because they’re scared off by auctions, experts say.
Universal Buyers Agent property expert Darren Piper said buyers are missing out on bargains of up to 25 per cent because they are frightened off by auction sales.
“It can be daunting if you don’t know what you’re doing,” Mr Piper said.
“With television shows turning up the theatre and adrenaline of an auction it can cause buyers quite a lot of anxiety.
“But for those who aren’t put off it can be a great way to get in the door and find a real bargain.”
A recent survey by finder.com.au found one in five Aussies are “terrified” of auctions with many buyers passing over listings with an auction process.
Although the process can be intimidating Mr Piper said professional buyers agents can help to do the heavy lifting for buyers by attending auctions, making bids and finding properties worth inspecting.
“The first reaction many people have when they see a listing set as an auction is to give it a miss.
“We cut through the smoke and mirrors and ask the hard questions to determine if the auction if worth pursuing and just what kind of bargain you could get.
Mr Piper said a client had discounted a listing at 27 Cowper Street, Bulimba believing the auction listing was likely out of their price range.
But after enquiring with the estate agent and working out the value the client was able to secure the property at auction for $50k less than their max price range.
Mr Piper said it is also worth finding out how many bidders are expected to manage expectations and avoid falling into a price war.
“Most buyers turn to water at the thought of standing in a public place staring down other buyers and engaging with a boisterous auctioneer.
“We make the process less scary so buyers have the choice of handing over bidding to an expert and ensuring they get the best deal possible.
“There’s nothing worse than being out bid after you’ve spent time and money on a property, but with the right help you can snap up a real bargain.”
01 October 2018
Author: REIWA President Hayden Groves
Real estate transactions are complex. For many West Australians, it can be a challenge to determine their individual rights and responsibilities when it comes to dealing with property issues.
REIWA launched a public information service in 1992 to assist buyers, sellers, tenants and landlords navigate their property journeys. This valuable service allows members of the WA public dealing with a REIWA agent to find answers to their real estate queries and concerns.
Last financial year more than 20,000 phone calls were placed to the REIWA Information Service (2,000 more than the previous financial year), with West Australians seeking clarification and assistance from the Institute on a wide range of real estate matters.
As the WA market has slowed these past few years, the REIWA Information Service has seen call volumes increase. Residential property management continues to be the most common topic the public ring about, with 70 per cent of all phone calls for the year to date received from tenants and landlords. The remaining 30 per cent of calls have generally related to residential sales.
When it comes to WA tenants, they most commonly call REIWA to discuss the early termination of their rental lease. They also want to know what rights their landlords have to enter their property while tenanted and what rights they have with regards to repairs and maintenance.
Landlords, on the other hand, most commonly call to seek information on a tenant’s obligation to pay rent, to find out how the court system works in order to claim damages and to clarify their rights around abandoned goods.
In the residential sales market, buyers who call the REIWA Information Service generally do so to get information about their obligation to obtain finance approval within a period of time. They also commonly call to clarify their rights for the pre-settlement inspection. While WA sellers most frequently ring to find out about the settlement process, satisfying contractual conditions and to discuss buyer requests which are not addressed in the contract for sale.
The REIWA Information Service team is comprised of two full time staff members and 70 local REIWA agents who give three hours of their time every few months on a voluntary basis.
When you call up, you are given direct access to these local property experts who can educate you on areas you’re unsure about and help resolve any tricky property matters you might be facing.
If you are dealing with a REIWA agent and have a real estate query you want answered, I’d highly recommend contacting the REIWA Information Service on 9380 8200 for assistance.