The balance between supply and demand emphasizes the market
As vaccination has become the national health priority, with most of the country entering and exiting some form of lockdown, Western Australia has weathered the pandemic well, recording a budget surplus of 5.6 billion dollars and positive economic activity resulting in a confident but cautious residential area. real estate market.
WA is in a prime position for residential real estate whether you are a buyer, seller or investor.
Evaluating CoreLogic’s recent real estate market report, Realmark Managing Director John Percudani said the underlying theme in the market right now is the tension between supply and demand.
With year-on-year demand still growing by 50%, Percudani noted that this resulted in a faster than market liquidation rate, causing a WA supply pipeline of less than 10 weeks of stock on the market. current residential market. .
However, despite market conditions, the median real estate price in Perth, at $ 555,000, remains the lowest of any Australian capital.
Looking at the rental market in WA, Mr Percudani said he has stabilized with tenants looking for longer-term leases and security in the homes they select.
The WA economy is in a strong position compared to other parts of Australia and, with excellent economic activity in terms of agriculture, mining and the service sector, the state notes a positive but cautious sentiment in the market, which positively affects the real estate market.
One question that arises, according to Mr. Percudani, is whether inflation will start to rise with increasing spending and economic activity and he suggests that was something to consider, particularly if you take an investment decision.
If you are a buyer, Mr Percudani said difficult market conditions are expected to continue until 2022.
“Our advice to you as a buyer is to be well prepared before entering the market,” he said. “Make sure you are clear about your buying ability and what your expectations are, and when you choose to act – act with confidence and clarity, and come up with your best offer. “
If you are an investor, Mr. Percudani suggests that you act now as prices are on the rise and demand from tenants is strong.
“The flight to quality assets among investors will continue and investment properties will remain attractive,” he said.
“It may be in your best interest to keep your existing property or to consolidate your investment, or if you have the opportunity to enter the real estate market as an investor at that time, you will take advantage of ideal market conditions and get ahead of the curve. “
If you are a seller, Mr. Percudani said now is a great time to put your property on the market.
“If you are planning to present your property to the market, you need to be mindful of buyers’ stress and therefore you may need to have some flexibility regarding settlement dates, subject to terms of sale and others. elements to welcome buyers in today’s market, ”he said. noted.
If you are looking to realize your asset as a buyer, these market conditions are in an excellent position, allowing you to maximize your price return and the conditions relating to your sale.