September Perth Property Update… Can Somebody Please Give Me An Outcome?

What a strange year 2010 has been… Can Somebody Please Give Me An Outcome?

Its hardly any wonder that confidence is down in the property market after the run we have had over the last 4 months. First of all there was Kevin Rudd’s bright idea to play with the mining tax and with WA being the mining state the impact was felt here hardest. I mean really who could possibly think they can spring a major new tax on big business without an extensive engagement and consultation period!

Then after the shit hit the fan, Julia and her counterparts decided to replace Kevin Rudd which came as a major shock to us all. The shock wave was felt immediately by the property market with supply increasing above long term averages of 11-12,000 houses for sale up to 16,000 houses over the course of 2-3 weeks.

Historically over any election period there is uncertainty in the property market, however not having an obvious choice for leadership and the election going to a stale mate only led to even more uncertainty and lack of confidence. Over the 4 week election period, I didn’t write a single offer on a property and instead of taking an axe and slashing my owners’ prices we chose to hold firm and wait things out. Finally we got an outcome to the election even though it still doesn’t feel like it.

So we are now entering spring which is traditionally a high turnover period where there is usually lots of properties hitting the market and lots of buyers snapping them up. Instead what I am seeing happen is 5,136 new listings hitting the market taking us up to 19,573 properties for sale in WA (Source- RP Data) and only 390 sales over the last 2 weeks. So the flood of new properties to the market has now left us with double the normal amount of supply and the buyers haven’t yet come back to the market.

The good news is that over the last 3 weeks there are lower amounts of buyers in the market but at least they are making buying decisions, which is evident with offers coming in on properties that are well priced.

Why don’t we just relax and enjoy the AFL grand final, that will make us feel better about life… Then the unthinkable happens and we have a draw, can somebody please give me an outcome?

So what are my crystal ball predictions for the next month and quarter?

There are 2 months left in Spring before we start seeing a slow down for the crazy Christmas season.

Only the serious sellers and buyers will be in the market over Christmas. If you are in the market to buy, its a great time to be selective and pick up a bargain.

In January we will again see renewed supply and buyers rushing to get a purchase made and settled before the kids go back to school. My advice to buyers is to not wait till January, go against the herd.

There are indications that we will see an increase to interest rates before the end of the year… personally I think its the last thing we need and I’m hoping that the RBA is just using the threat as a deterrent.

I will be sure to keep you updated with what is happening in the market next month and in the meantime if you are buying or selling make sure you get the Edge by taking advantage of our Property Education Resources and our services.

I would love to get your feedback and comments so please post them below… Did you find this Update Useful? Would you like any other areas covered?