Perth Home Buyers Finding Bargains Due to Increased Supply
Announcement posted by Smartline Rockingham 12 Mar 2015
Home loan brokers in Rockingham reveal how current market conditions are producing discounts on many homes.
Rockingham, WA, 12 March 2015 - According to statistics from the Real Estate Institute of Western Australia (REIWA), the number of homes for sale in the Perth market is increasing. This increased supply is affecting both demand and prices.
Prices Being Discounted
REIWA statistics indicate that nearly 50% of all homes in WA are being sold for less than the original asking price, with 5.3% being the average discount. This could work out to $29,309 on a home selling for the median Perth price of $553,000.
Median Home Prices Steady
Median price estimates vary from Landgate’s estimate of $540,000 to the REIWA estimate of $553,000. David Airey, who is the President of REIWA, estimates that when the numbers are sorted out, housing growth will have stood at 4.6% for 2014.
Apartments and Units
Landgate estimates that the turnover for apartments and units in December suffered a drop of 30%. The median price for an apartment, unit or villa for 2014 was $444,000.
Rental Income
Due to an increase of 600 available properties in the December quarter, vacancies are currently sitting at 4.2%. Median rent is now $440 a week, down from $450. Houses are $450 and units are $420.
Regional WA
Numbers are varying widely in Regional WA. Busselton is up 9.4% for 2014. Northam grew 3% and the Albany and Mandurah/Murray areas grew 1%. The news isn’t all good, as the Pilbara area is being severely affected by the contraction of the mining industry. Port Hedland was down 3% for the December quarter but down 14% for the entire year of 2014. Karratha saw a drop of 15.4% for the December quarter and a total of nearly 30% for the year.
REIWA Projections
Mr Airey is of the opinion that the housing market will continue to be affected by the mining industry’s contraction, but stops short of predicting a further fall. He is waiting for the March numbers to get a better idea of what will happen this year.
Smartline Rockingham Projections
Justin Smith is the principal mortgage broker at Smartline Rockingham. He has over 27 years in the industry and has been through more than one property cycle. According to Mr Smith:
“Years of being in the business have taught me that real estate almost always works out as a long term investment. There are virtually no ten-year periods where someone could buy a property in a location primed for capital growth, keep it maintained for ten years and not sell for a profit. Cycles come and go, but real estate always trends up in the long term, despite those cycles.”
Mr Smith concluded: “The market is soft right now, but won’t be for long. There are some great bargains right now, but they won’t be there long. Those who move now will profit. Those who don’t, won’t.”
Smartline Rockingham is a firm which brokers home loans in the Rockingham area. They have been open since 1999 and their home loan brokers have extensive experience in the Rockingham and Perth markets. To learn more or to enquire about a pre-approved home loan, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.
Prices Being Discounted
REIWA statistics indicate that nearly 50% of all homes in WA are being sold for less than the original asking price, with 5.3% being the average discount. This could work out to $29,309 on a home selling for the median Perth price of $553,000.
Median Home Prices Steady
Median price estimates vary from Landgate’s estimate of $540,000 to the REIWA estimate of $553,000. David Airey, who is the President of REIWA, estimates that when the numbers are sorted out, housing growth will have stood at 4.6% for 2014.
Apartments and Units
Landgate estimates that the turnover for apartments and units in December suffered a drop of 30%. The median price for an apartment, unit or villa for 2014 was $444,000.
Rental Income
Due to an increase of 600 available properties in the December quarter, vacancies are currently sitting at 4.2%. Median rent is now $440 a week, down from $450. Houses are $450 and units are $420.
Regional WA
Numbers are varying widely in Regional WA. Busselton is up 9.4% for 2014. Northam grew 3% and the Albany and Mandurah/Murray areas grew 1%. The news isn’t all good, as the Pilbara area is being severely affected by the contraction of the mining industry. Port Hedland was down 3% for the December quarter but down 14% for the entire year of 2014. Karratha saw a drop of 15.4% for the December quarter and a total of nearly 30% for the year.
REIWA Projections
Mr Airey is of the opinion that the housing market will continue to be affected by the mining industry’s contraction, but stops short of predicting a further fall. He is waiting for the March numbers to get a better idea of what will happen this year.
Smartline Rockingham Projections
Justin Smith is the principal mortgage broker at Smartline Rockingham. He has over 27 years in the industry and has been through more than one property cycle. According to Mr Smith:
“Years of being in the business have taught me that real estate almost always works out as a long term investment. There are virtually no ten-year periods where someone could buy a property in a location primed for capital growth, keep it maintained for ten years and not sell for a profit. Cycles come and go, but real estate always trends up in the long term, despite those cycles.”
Mr Smith concluded: “The market is soft right now, but won’t be for long. There are some great bargains right now, but they won’t be there long. Those who move now will profit. Those who don’t, won’t.”
Smartline Rockingham is a firm which brokers home loans in the Rockingham area. They have been open since 1999 and their home loan brokers have extensive experience in the Rockingham and Perth markets. To learn more or to enquire about a pre-approved home loan, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.