City where buyers are still in a frenzy, snapping up homes as they list
Property markets in some parts of the country might be cooling but homes in Perth are now selling two weeks faster than they were pre-pandemic, with many vendors having “no difficulty” finding a buyer.
While new data from PropTrack shows a quieter start to the traditionally busy spring selling season from a real estate listings perspective, would-be purchasers remain out in force, experts say.
New listings were down 5.1% in September month-on-month, PropTrack economist Angus Moore said, with the lacklustre start to spring likely due in part to the National Day of Mourning public holiday to mark the death of Queen Elizabeth.
“The slower month for new properties coming to market meant the total number of properties listed for sale declined slightly, down 0.8% month-on-month,” Mr Moore said.
“Even so, choice for buyers in Perth has improved this year, with the total number of properties listed for sale up 2.5% compared to the start of spring last year.”
Buyers out in force
Property analyst Gavin Hegney said as there had been no difficulty selling properties in Perth this year, people were not waiting for spring in hopes their home would sell or achieve a better price.
“I think the hope of every agent in Perth would be that spring brings some new listings as we are chronically short on properties available for sale,” Mr Hegney said.
“And I think anyone looking to buy a property would desperately hope that more stock comes to market so they’ve got some choice. What I would say is that the first round of properties that do hit the spring market are going to be jumped upon.”
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Perth’s property market is enjoying clear skies, with continuing strong buyer demand. Picture: Getty
That said, buyers aren’t feeling a sense of FOMO – or ‘fear of missing out’ – and so sellers need to price their homes fairly, he said.
Spring had already sprung
Travis Coleman from Acton Belle Property said there had been no “spring shift” in the market this year for one major reason –demand had been strong throughout 2022.
“We are still getting really high levels of enquiry and shorter days on market as long as the basic fundamentals are adhered to, and that’s getting the presentation right, the marketing is right, and of course, getting the price right,” Mr Coleman said.
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Quality properties that are presented and priced well are selling fast – sometimes at the very first opportunity, he added.
“Certainly, we are getting those examples where they (properties) are selling at the first home open. What we might be seeing right now is that it’s not necessarily always the first home open, it’s still a short period traditionally. It might be that two to three weeks is more of a sensible time period.”
Impact of rate rises being felt
While intense competition amongst buyers is still rife, Mr Coleman said those active in the market are becoming more price sensitive compared to a year ago.
Rapidly rising interest rates and a slight erosion of consumer confidence are playing a part.
“We always advise our clients that people are very aware of what’s happening in the marketplace,” he said.
“If they’re in that buying cycle, they are pretty price sensitive – they are aware of what’s available and what things are going for, and what the expected sales price should be.”
Buyers active in the market are in some cases snapping up homes at the first available opportunity. Picture: Getty
While Western Australia had a busy start to 2022, with more sales across the first half of the year than during the same period in 2021 and far more than in 2020, there are some signs that conditions are starting to change.
Mr Moore said the past few months have been a little slower for sales than compared to 2021.
“Prices in Perth are falling, and were down 0.3% in September compared to August, according to the PropTrack Home Price Index,” he said.
“Even so, they are still 6.5% higher than they were in September 2021.”
