Perth property market: The upside of a downturn
13 March 2019
Think the time is right to buy a house?
There’s no shortage of news about the downturn in the national property market. Since October 2017 we’ve been witnessing a steady decline in property values, and while experts continue to speculate that the end is in sight, the situation remains that property prices are the lowest they’ve been in almost 18 months.
So while it may not be a blue sky environment for property owners who need to sell, the other side of the coin is much shinier for those in the market to buy. Even more so if you’re setting your sights on a property in the sub $500k category.
Sales are up in the lower end of the market, with REIWA reporting 49% of sales in February had a sale price below $500,000.
With the trend now in its third consecutive month, REIWA President Damian Collins said traditionally, a greater proportion of activity occurring below $500,000 indicated first home buyers were on the move.
Corelogic’s latest report observes that the number of properties for sale has been ‘consistently rising due to fewer buyers and longer selling times’, and while vendor confidence may be low, ‘buyers are firmly in the driver’s seat’ when it comes to bargaining power.
Let’s not forget that official interest rates remain at a historic low. Currently sitting at 1.5% with no change since August 2016, although most lenders hover between 3.5%- 5.5%, the stability in rates is another draw card for home buyers.
It all adds up to a buyer’s market and if you’ve been savvy enough to save a decent deposit, you’ve got a great chance of snapping up a bargain.
Don’t despair if you need a little more in the kitty before you take the plunge, REIWA’s got some great tips to help kick your savings along if you’re trying to reach a deposit goal.
When you’re ready to navigate the world of home loans, the team at Shakespeare Leasing & Mortgage Solutions can help find the perfect fit for your needs.
Contact them on 9321 2111 to see how they can help – just like Conor and Emily did!
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