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15 October 2018
By portermathewsblog


via reiwa.com.au

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.”

Sales activity

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.

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08 October 2018
By portermathewsblog


via therealestateconversation.com.au

Almost one in five Aussies are missing out on bargains because they are scared off by auctions.

Image result for real estate auction
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.”

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04 September 2018
By portermathewsblog


via therealestateconversation.com.au

Jon Bahen, director of Abel Property – Cottesloe told WILLIAMS MEDIA about building inspection reports in Western Australia, including what they are, why you need one, and what they cover.

What is a building inspection report? And do you need one?

For most people purchasing a property is one of the biggest financial decisions they will make in their life and it is always important to ensure due diligence on the home has been done. A building inspection report can be part of this process and is a great way to protect your interests and peace of mind.

In most circumstances, a building inspection report is included as a condition of the Contract for Sale. The investigation for this report needs to be carried out by a qualified building inspector, surveyor or builder and the cost for this report is borne by the buyer.

There are a number of different types of building reports with different cost structures. For example, a basic structural inspection can be obtained for $280 for a single level three bed, two bath, brick and tile/metal home with slab on the ground, while a premium inspection which is usually used is around $495. This expenditure is a wise investment considering the potential cost of buying a property that needs extensive unexpected restoration and repairs.

What does a building inspection report look like?

The report will include photos and address of the property, name of the applicant, the time and date and the age of the home. It also lists the name, contact details, and qualifications of the inspector, including their WA Builders Registration number.

Next, a summary of the significant findings will be highlighted to ensure the prospective buyer can easily see what necessary or immediate repairs are required.

The report will contain explanations of the definitions used by the inspector to record the condition of the property and any disclaimers and information about what is not reported on.

The remainder of the pages will contain photos and detailed room-by-room information on the condition of the floors, walls, ceilings, doors, and all fixtures including bathroom and kitchen appliances.

What does a building inspection report cover?

The inspection covers a visual assessment of the property and provides an opinion regarding its general condition. An estimate of the cost to repair the defects is not within the scope of the Australian Standard and does not form part of a report. If the property is part of strata or company title, the inspection does not cover common property, only the immediate interior and exterior.

The electrical and plumbing systems are only checked for basic functioning. If the buyer requires a more detailed report on these systems, they will need to employ licensed professional plumbers or electricians.

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07 August 2018
By portermathewsblog


via https://www.therealestateconversation.com.au

Property prices in Perth have strengthened during the June 2018 quarter, according to fresh research from the Real Estate Institute of Western Australia (REIWA).

Capture

Simon McGrath, principal of Abel McGrath in Perth told WILLIAMS MEDIA now is the time to “be strategic and make a committment to securing a property in that location you’ve always wanted”, as data from the Real Estate Institute of Western Australia reveals property prices in Perth are strengthening.

REIWA President, Hayden Groves told WILLIAMS MEDIA the data indicates Perth’s median house price would settle at around $520,000 for the June 2018 quarter, which was up one per cent compared to the March 2018 quarter and two per cent compared to the June 2017 quarter.

“In addition, Perth’s median unit price is expected to lift by 4.9 per cent to $419,500 for the June 2018 quarter, which is 2.3 per cent higher than the same time last year,” Mr Groves said.

2045 Roland Road, in Western Australia is for sale through Neil McAllister of Bellcourt Property Group as featured on Luxury List

“After declining during the March quarter, it is pleasing to see prices rebound strongly this quarter. With the worst of the market downturn appearing over, the improvement in house and unit prices this quarter suggests buyer confidence is returning which should bode well for sellers as we move into spring,” Mr Groves said.

Mr McGrath’s advice to those looking to enter the market is to act now.

“At times like these, properties become available that would generally not be available. That is the big gift in this market,” McGrath said.

Overall, Mr McGrath says the market is “okay, but not great”.

“Perth is nothing but a big mining town. The flow-on effect from the mining industry affects Perth’s real estate market, so you’ve got a real upswing. Behind the scenes there is plenty of optimism.

“There is still plenty of caution in the market, prices aren’t shooting up. It is a very stoic market.

“We are seeing reasonable numbers at home opens, but it can be very spasmodic. Some home openings will be fantastic, others very quiet – there is no rhyme or reason to it,” Mr McGrath continued.

With 6,900 sales recorded during the June 2018 quarter, sales volumes declined during the June quarter. Mr Groves said the onset of winter likely contributed to subdued activity levels.

“It’s not uncommon for activity to drop off this time of year. Traditionally, activity tends to slow during the winter months before picking up again in spring,” Mr Groves said.

2045 Roland Road, in Western Australia is for sale through Neil McAllister of Bellcourt Property Group as featured on Luxury List

Despite the overall decline in sales, numerous suburbs recorded more sales this quarter than they did in the last quarter.

“The suburbs with the biggest improvement in house sales were North Perth, Queens Park, Singleton, Camillo and Beldon, while West Perth, Balcatta, Rockingham, Claremont and Mount Lawley had the biggest improvement in unit sales,” Mr Groves said.

“Good quality family homes attracting a lot of attention”

REIWA data shows the composition of sales shifted during the June quarter, with more house sales recorded in the $800,000 and above price range than in the last quarter.

“The June 2018 quarter continued the trends observed during the December 2017 quarter, with good quality family homes attracting a lot of attention in aspirational areas,” Groves told WILLIAMS MEDIA.

“As the Western Australian economy begins to regain strength and owner-occupier loans remain the most affordable they have been in decades, buyers are recognising there is good opportunity to secure a family home in areas that might previously have been considered out of reach,” Mr Groves said.

Listing stock has “hit the ceiling”

Mr Groves told WILLIAMS MEDIA stock levels across the metro area have declined 1.1 per cent during the June 2018 quarter.

“We certainly appear to have hit the ceiling as far as listing stock is concerned. Despite fewer sales being recorded this quarter, it is encouraging to see stock levels have continued to be absorbed,” Mr Groves said.

On average, it took 67 days to sell a house in Perth during the quarter, one day faster than both the March 2018 and June 2017 quarters.

2045 Roland Road, in Western Australia is for sale through Neil McAllister of Bellcourt Property Group as featured on Luxury List

Mr McGrath told WILLIAMS MEDIA that although the market is pretty tough, his area in the western suburbs of Perth have short supply.

“There’s no denying – it is pretty tough. The good news in the western suburbs is that we have got short supply, whereas in the greater Perth market there is oversupply in many places. The short supply in the western suburbs is ticking the value of buoyance.” Mr McGrath said.

Less vendors discounting their asking price

Data for the June 2018 quarter shows the proportion of vendors who had to discount their asking price in order to achieve a sale declined by five per cent.

“With reductions observed in average selling days and discounting, this is a good indicator sellers are listening to the advice of their agents and pricing their property in line with market expectations,” Mr Groves said.

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