How has the Perth real estate market faired in what has been a Topsy-Turvy TwentyTwenty? Well, surprisingly at the half year mark, the Perth real estate market is experiencing an incredibly buoyant period. There are several factors that have created a “Perfect Storm” for our industry.
1. The final quarter of 2019 saw a stabilisation of what was a falling market for about 6 years. Record low interest rates, population growth on the rise and the mining industry making noise again rallied positive sentiment across most business sectors
2. The holiday season (Dec/Jan) traditionally sees a slow down in the supply of new properties. February, after school is back and life returns to normal tends to be the trigger for most people to take the big plunge and go to market, but not so much in 2020 (keep reading).
3. March 2020 saw the introduction of a new villain to the world stage, Covid-19! Many sellers opted to withdraw their homes from the market and those getting ready for the March listing period put plans on hold during what looked to be a “Lock-down” of some sort on the horizon. So supply of new properties was stagnant.
4. I must admit, I didn’t anticipate this factor in the least… Buyer demand INCREASED during the “Isolation” period, despite the challenging environment.
So to put this into perspective in the form of real measurable data; in 2019 it was common to see around 15,500+ properties for sale across the Perth Metro area. Now, we have dropped to 10,400 properties with over 1300 properties selling in the first week in July and 1000 properties sold in one week in June which hasn’t happened since 2013… that is a huge decline in supply with demand showing no immediate signs of easing.
Of course, this is a distilled version of what is a complex local and global environment. The question is, how long will this current environment last?