The last few months has seen a remarkable change in the local real estate market with property sellers now in a much stronger negotiating position due to a growing shortage of properties for sale.
This trend is underlined by the latest figures produced by REIWA which show that during the December 2009 quarter there were 10,400 properties listed for sale which is a drop of 35% during the last year.
Buyers have therefore fewer homes to choose from while at the same time confidence in the property market has increased significantly over the last year due to improving economic conditions.
The end result is that the Perth median house price is now around the same level as the boom of 2006/2007. However, while market conditions have improved, properties still need to be properly priced and marketed.
The average selling time for a home in Perth is now around 54 days and while this selling time frame has fallen by around 20 days in the last year, properties which are over priced will struggle to find a buyer even in current market conditions.
This trend is underlined by the fact that Peard offices are now receiving multiple offers on many of the properties we have listed for sale in the northern suburbs because they are correctly priced and therefore attract the greatest potential number of buyers.
While the real estate property sales market is performing very strongly, the rental market has undergone a major correction in recent months. The rental vacancy rate in Perth is now 4.7% which is a rise of 2.3% compared to this time last year.
This surge in the number of rental properties available for rent has meant that landlords have to work harder to find quality tenants. Weekly rents have to be very competitive and properties need to be very well maintained.
Many landlords who manage their own properties are now struggling in current market conditions and that is why they are deciding to use professional property management companies such as Peard.
Over the last three months, Peard has recorded a 35% jump in the number of enquiries from private landlords seeking our company to manage their properties and we expect this trend to increase over the coming year.
Source: RealEstateWA, Friday February 19, 2010