For many years now, people have been snubbing the Perth housing market. Real estate investors just did not think it wise to invest in the city. There’s a housing shortage problem now as a result of that.
According to the data, the Perth real estate market is changing. The numbers suggest that the city is making a comeback in the wake of the mining sector’s downturn. The median price lifted nearly two percent in December, and projections indicate price growth.
Again, back in December, Perth had the third strongest real estate growth across Australia. That was the second month in a row where the city experienced an increase in median house price. Analysts think this indicates that the market already hit rock bottom and is now going back up.
Perth’s housing market has surprised experts. Most of the state of Western Australia has been in an economic malaise, yet the city’s housing remains incredibly resilient.
Concerns about prices falling like lead balloons turned out to be untrue. The price didn’t drop that far, despite seeing more than a few falls. Highly desirable suburb areas around Perth may not command as high prices as they did before, but not to the disastrous level originally predicted.
What does this mean? It means people are starting to buy again.
The prices are just low enough that people can get into the market. However, they’re not so low as to suggest they’re not going back up. With the trend going upwards slowly, it is a good time to step in.
One of the benefits of buying now is that there is less competition than normal. Investment properties and homes in Perth are still not in high demand. That may change if the market revitalises later in 2017. For now, though, there is still plenty of room.
Experts suggest that the “competition” will only heat up in the second half of this year.
However, there is a chance it might happen earlier. Buyer activity in the city is on the increase. Listings are growing. Similar markets along the west coast are also starting to fire up, which could be indicative of the Perth market’s future.
One of the crucial elements of this is the perception that prices can’t go much lower. The market has bottomed out, and that is usually a signal for a change in the market.
Click home for more advice on property and real estate!