Perth Real Estate May 2023 Market Update.
Video Transcript:
Here’s your Perth real estate market recap for the month of May.
My name is Rume Gould and I’m a Perth Real Estate Agent who is passionate about helping you use real estate as a tool to enrich your life.
Nationally house prices in May recorded their 3rd consecutive monthly rise, 1.2% for the month, and the strongest growth levels since November 2021.
More locally, Perth prices rose 1.3% for the month of May. Perth, Brisbane and Sydney were the only capitals that recorded a monthly gain of more than 1%. Although Perth is the only capital city where dwelling values have kept steady at record highs.
So where does Perth’s current median – $580,023, position it compared to the rest of the country? Perth is currently the 7th most affordable capital, only ahead of Darwin. This relative affordability continues to make Perth very appealing for interstate investors, particularly in outer suburbs like Armadale and RocKingman.
With the number of new home listings continuing well below 5 year averages, a tight rental market, and competition amongst buyers remaining strong, homes are continuing to sell quickly with minimal vendor discounting for well priced, well presented homes.
Naturally there’s still uncertainty around the impact of possible future interest rate rises. However Perth’s market looks to continue to remain solid over coming months.
For more visit: Corelogic
Key Takeaway From The May 2023 Market Update
With all this in mind here are my key takeaways from the available data:
- There is still growth occurring in the market. Interest rates haven’t quelled demand, which is just as strong as ever. Seller sentiments remain the same, so the lack of supply is keeping the market bouyant.
- A property that is well presented and well priced will perform well.
- If your home isn’t attracting buyers look at some cosmetic upgrades, e.g. curb appeal, lick of paint, new kitchen hardware, improve the lighting, investing in property staging etc. What feedback is coming from home opens? Can you implement any works based on any roadblocks buyers have stated are stopping them from making an offer?
- If you don’t have the funds, time or interest in any cosmetic works, then perhaps it’s time to look at the price, pricing strategy or method of sale.
Tips For Buyers In This Market
If you’re currently in the market to buy a home my advice would be:
- Seek out agents in the suburbs you’re interested in buying in and register for their property alerts to make sure you don’t miss out or are able to attend any pre-market or VIP database launches. Not all homes are sold ‘on market’. A home owner may not want to spend any money on marketing, or may want a discreet sale, or the agent may be testing the market before listing a home to the full market.
- A less common strategy is to reach out to an agent about a property you like even if it has been listed as “under offer” It’s not inconceivable that a sale may fall through, this way the agent can reach out to you in the unfortunate circumstance it does come back on the market.
- Register for property alerts on the major real estate platforms. Life is busy, but with days on market at such low numbers it can be easy to miss a listing if you’re manually checking. Set up your preferences and criteria and let the notifications flow through to your inbox.
- Make sure your finances are in order if you can. With the consecutive rate rises some lenders aren’t prioritising pre-approvals given the month on month change to borrowing capacity. So whilst it might not always be possible to get the letter, having a broker who has pre-vetted your financials, that can even speak with the agent when you make an offer, can go a long way toward securing your offer, particularly in a multiple offer situation where the vendor want some certainty.
- If you find a home that you love, don’t be afraid to make your offer more personal. Include a letter or similar and explain to the owner what it is that you love about their home. Not every sale is about the highest purchase price. You never know they may be sentimental and want someone just like you to buy their much loved home.
For more guidance around buying a home check out my free guide, Buying a Home 101. You can access the guide along with other freebies on my free resources page here, or download the guide directly here
Ready To Make Your Move?
Thinking of selling your home? When you are ready I would love to hear from you about your goals. To offer you a quality selling experience that ensures you are supported with the right tools and expertise every step of the way. If you’re not quite ready to sell but want to start preparing your home, for a limited time you can request a free, no obligation pre-sale consultation. You can learn more about this offer here or get in touch with me on 0479 143 324 or visit the contact page here.
Source: REIWA and Corelogic
