A Good Time to Buy While Perth Housing Prices are Low

As the mining boom officially comes to an end, the Australian economy is teetering on the verge of recession. Due to the decrease in mining revenue, companies have been forced to downsize, and population growth is beginning to slow, according to a report by WA Today. While unemployment rates soar, these factors have created a perfect climate for housing prices in Perth to fall drastically.

According to a data report released by Bloomberg Business, it was recorded that in October last year Perth dwelling values dropped to their lowest point since June 2013. Furthermore, rental prices have decreased 9 percent in the last 12 months and vacancy rates in Perth were recorded as the worst across Australia.

While Sydney house prices have continued to grow exponentially, Perth prices head in the other direction. This has not only attracted the attention of international development agencies, but has provided a wide appeal for Chinese buyers with cash to spend.

However, while the decline seems to continue throughout the first half of this year, it has been predicted that we are nearing a price turn-around for 2017. It was discussed in an article by Domain senior economist Dr Andrew Wilson that "the Perth market is now heading toward the bottom of the price cycle, with improving local and national economic factors starting to adjust over the next 12 months."

Sure enough, it has been forecast by Corelogic and Moody’s Analytics that housing prices will rise 5.08 percent in 2017, ending the 2-year pricing decline.

So what does this mean for you?

Dr Wilson discussed that while prices are low, "the weaker market offers opportunities for investors, first home buyers and aspirational buyers looking to move up into higher ranges." Not only that, but plenty of opportunities have been created for buyers with a ruthless attitude towards buying in a climate such as this.

In any capacity, we agree that now is a time to take advantage of low housing prices before confidence in the market is restored.

Peter offers his own advice; “Now is a good time to look, but before you decide to buy, do your research on what is available, and negotiate hard.”

If you would like to discuss your options regarding your search, or your interest to buy, request a free appointment with one of our friendly team members.