We are now in April 2013 and looking back on 2012 we experienced
a property market where prices started to come back up in the second part of
the year. 2013 finished with low levels of properties on the market and in
particularly properties in the sub $600k selling quickly when appealing to the
first home buyer segment.
Whether you are a buyer or seller looking to be active in the
2015 Perth property market there are always several considerations to take into
account. Consult professional Perth real estate agents to make the right
choice. Here are my 3 key indicators that are worth keeping an eye on when
buying or selling.
The vacancy rate
The rental vacancy rate is important as if there are hardly any
vacancies available it is an incentive for renters to become home owners as it
becomes harder to find a place to live or if rents continue to go up. To a
large extend this is first home owners who are entering the market. This is
going to continue to have a ripple effect for existing home owners who want to
upgrade and it will stimulate the market in general.
Additionally, as rentals increase in price, investment
properties also become more attractive. In particularly inner city rental
experienced strong demand in 2013 and in some areas rental increases of 10-20%
was to be expected.
Number Of Properties On The Market
The number of properties on the market is a strong indicator of
the supply and demand situation in Perth housing market. As a rule of thumb,
approx 12000 properties is a balanced market. When there is more than 12000,
say 10,000-11,000 which is what we are experiencing now (December 12), then it
is a sellers's market. On the other hand, if there is less more than 12000,
then it is classified as a buyer's market.
Days On Market
Once you know the number of properties on the market, you also
need to consider days on market. What is the average time it takes to sell a
property? The quicker the properties are selling will tell you which suburbs
are more in demand than others.
You can find these trends on the Reiwa website and the weekend
newspapers also publish some of this information in their property section. It
is important to remember that when you are looking at buying or selling, you
are looking at specific suburbs which may not follow the same trend as Perth, so
consider this when you are analyzing the Perth property and housing market.
These indicators should only be a part of your research and you
should always consider local factors and conditions as well.
From selling real estate to property management Perth, you
should only invest in a deal after you have done a lot of research. Keep all
these excellent tips in mind to make the right choice.
Readers should always seek their own independent advice prior to
making any decisions regarding property or finances
