Real estate sales in Perth have reached a level not seen since 2010 against the backdrop of strong buyer demand.
The median home sales period in April was 13 days, but the number of listings increased by 1% from March and decreased by 11% from April last year.
MacHall Sales Real Estate, which is affiliated with Knight Frank executive Greg Williams, said high sales volumes and a low list of properties will continue to drive the market from the end of 2020.
“Low supply and stable demand mean that sellers are happy,” he said.
“Currently, real estate is a much more liquid asset than usual, so buyers need to make quick decisions not to miss it.”
Damian Collins, president of REIWA, said the market is about supply and demand.
“A balanced market is about 12,000 to 13,000 properties that can be sold throughout Perth,” he said.
“Currently, we have about 8,000 properties, which fluctuate slightly from week to week.
“There are just not enough properties to meet the demands of the market.”
Despite the small number of properties available, Collins said sales volume is increasing, consistently reaching about 1000 properties per week.
“These are pretty solid numbers,” he said.
“In 2018 and 2019, we had 600 properties a week on a regular basis, but we don’t have much in stock.
“As soon as something good comes to market, it sells very quickly.”
Western Australia has a high unemployment rate, with an unemployment rate of 2.9%, the lowest ever, according to Australian Bureau of Statistics data. This, coupled with strong economic growth and relatively low interest rates, has led to increased demand.
Williams said sales volume will continue to grow, depending on the macroeconomic impetus on the demand side of the equation.
“If demand stays strong, sales should continue to be strong,” he said.
“Uncertainty surrounding political stability and interest rate setting can change demand.”
Collins said interest rates did not weaken the market.
“The agent I spoke to reported high demand because people wanted to blockade real estate before the prices were too high,” he said.
Another factor that could drive demand is the opening of borders and the relaxation of restrictions after the WA’s long stint was cut off from the world during the COVID-19 pandemic.
“At some point this year, we’ll start seeing more migrants come to work,” Collins said.
“It will be harder to get people here than before, but this population growth will continue to stimulate demand.”
According to Collins, WA is the cheapest housing state in the country, about 25 to 30 percent lower than Brisbane and Melbourne, and 15 percent lower than Adelaide.
“Our country’s institutions are doing affordable research, and the final report states that an average of 26.2 percent of income is spent on mortgages in Washington,” he said. ..
“In New South Wales, it was the cheapest of the major states, with over 44%.”
Collins said REIWA expects continued price increases for the rest of the year.
“We expect the 2022 calendar year to grow by 10%, and we see it going well,” he said.
Williams said most of the commentary on interest rates focused on different levels of household debt-to-income ratios on the East Coast than WA.
“Not all buyers take this into account. Most buyers are a little cautious,” he said.
“Even after the recent hike, the Reserve Bank of Australia’s cash rate is only 0.35 percent.
“When prices are adjusted slowly, it only goes in the normal direction from something close to something that doesn’t exist.
“If the economy needs such low interest rates immediately, that would be a worse sign. One day I would like to see signs of inflation rather than deflation.”