Perth Home Prices Fall: Bargains Available but for How Long?
Announcement posted by Smartline Rockingham 24 Aug 2015
Mortgage broker in Baldivis reveals why those who move fast may be able to find bargains in the current housing market.
Rockingham, WA, 24 August 2015 - The June housing statistics from the Real Estate Institute of Western Australia (REIWA) contained surprising results for many in the Perth area. The big news: the median price of a house in the Perth market fell from $550,000 to $530,000 for a drop of $20,000. In addition, units also fell $20,000, from $440,000 to $420,000.
In Regional WA, results were similar but not as extreme. Regional WA houses fell $10,000 from $390,000 to $380,000 and Regional WA units fell $4,500 from $329,000 to $325,000.
More surprising to many: the median home in the Perth metro area was on the market for 71 days. This caused many sellers to accept less than the original selling price. The average discount was 6% as sellers scrambled to get rid of homes.
David Airey, President of REIWA, attributed the drop to “composition of sales” and to the amount of available housing increasing faster than the population is. Mr Airey, who predicted a “soft market” in 2015, feels that market has officially “arrived.”
The number of first home buyers who applied for the First Home Owner Grant (FHOG) in the June quarter dropped 21% from the same time last year, coming in at 4,820. It must be noted that the FHOG could be used to buy established homes in 2014 but currently can only be used on new homes. This puts the relevancy of that statistic in question.
Justin Smith, Principal Mortgage Broker for Smartline Rockingham, believes that current conditions have created a perfect time to buy a home in the Perth market. According to Mr Smith:
“The current situation in Perth is unprecedented. While Sydney and Melbourne are showing tremendous growth, with prices rising 18.4% and 11.5% respectively in the last year, Perth prices have actually gone down. If there’s anything the property market has indicated over its history, it’s that prices never stay low for long.”
Mr Smith continued, “The Perth market, which includes the Baldivis area, now has the perfect combination of metrics for buying a home. The economy is getting better, interest rates are at an all time low and housing prices have actually decreased $20,000. We are encouraging anyone who is thinking of buying a home in the next five years to take advantage of this temporary blip on the radar screen.”
Mr Smith added further: “Everything that has been done, from the FHOG to the lowered interest rates, has been done to stimulate the construction industry and the housing market. We can’t see this combination of low prices and low interest rates lasting past the end of the year, if it lasts that long.”
Mr Smith concluded, “Five years from now, a lot of people are going to wish they had bought a home in 2015.”
Justin Smith is a mortgage broker at Smartline Rockingham. Smartline Rockingham has been in business since 1999, serving the Rockingham, Baldivis, Kwinana, Mandurah and Cockburn areas. They offer home loans, personal loans, business loans and a full range of financial planning and wealth protection services. To learn more, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.
In Regional WA, results were similar but not as extreme. Regional WA houses fell $10,000 from $390,000 to $380,000 and Regional WA units fell $4,500 from $329,000 to $325,000.
More surprising to many: the median home in the Perth metro area was on the market for 71 days. This caused many sellers to accept less than the original selling price. The average discount was 6% as sellers scrambled to get rid of homes.
David Airey, President of REIWA, attributed the drop to “composition of sales” and to the amount of available housing increasing faster than the population is. Mr Airey, who predicted a “soft market” in 2015, feels that market has officially “arrived.”
The number of first home buyers who applied for the First Home Owner Grant (FHOG) in the June quarter dropped 21% from the same time last year, coming in at 4,820. It must be noted that the FHOG could be used to buy established homes in 2014 but currently can only be used on new homes. This puts the relevancy of that statistic in question.
Justin Smith, Principal Mortgage Broker for Smartline Rockingham, believes that current conditions have created a perfect time to buy a home in the Perth market. According to Mr Smith:
“The current situation in Perth is unprecedented. While Sydney and Melbourne are showing tremendous growth, with prices rising 18.4% and 11.5% respectively in the last year, Perth prices have actually gone down. If there’s anything the property market has indicated over its history, it’s that prices never stay low for long.”
Mr Smith continued, “The Perth market, which includes the Baldivis area, now has the perfect combination of metrics for buying a home. The economy is getting better, interest rates are at an all time low and housing prices have actually decreased $20,000. We are encouraging anyone who is thinking of buying a home in the next five years to take advantage of this temporary blip on the radar screen.”
Mr Smith added further: “Everything that has been done, from the FHOG to the lowered interest rates, has been done to stimulate the construction industry and the housing market. We can’t see this combination of low prices and low interest rates lasting past the end of the year, if it lasts that long.”
Mr Smith concluded, “Five years from now, a lot of people are going to wish they had bought a home in 2015.”
Justin Smith is a mortgage broker at Smartline Rockingham. Smartline Rockingham has been in business since 1999, serving the Rockingham, Baldivis, Kwinana, Mandurah and Cockburn areas. They offer home loans, personal loans, business loans and a full range of financial planning and wealth protection services. To learn more, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.