Go local for your property market info 

As seen in The West Real Estate

There’s been a lot of sensational property headlines following the Federal Budget.  

For example, ‘Decline’: housing downturn looms as rate hikes bite. Brutal weekend, house price correction hits. ‘Lowest in 6 years’: worst news for homeowners as auction clearance rates tank and national house prices flatline. 

It would seem like we’re heading into a downturn and it’s time to panic. 

When looking at property news it’s important to consider the source of the information and the publication it’s featured in. A lot of these types of stories have been in national publications, using information from east coast-based commentators, or feature the experience of east coast markets. It’s very typical to see what’s happening in the Sydney and Melbourne markets dominate the news, even here in WA. 

However, our market often runs counter-cyclical to the eastern states. 

For example, when interest rates fell between 2015 and 2019, prices in Sydney and Melbourne increased. Meanwhile, WA experienced an extended property downturn, sparked by the downturn in the mining industry. 

The onset of COVID saw prices drop in Sydney and Melbourne, while the Perth market started its recovery. 

When interest rates started a run of 13 increases in May 2022, prices in east coast markets dropped significantly. Perth experienced a tiny correction and continued to grow strongly.  

Each market has different drivers and responds to change in different ways. While it is good to read, view, or listen to a wide range of information, when it comes to WA, it’s important to get your information from a local source. 

REIWA is the peak body for the real estate profession in WA. We represent more than 90 per cent of active real estate agencies in the state. We have access to data and insights not always available to national commentators. 

A lot of this information is freely available on reiwa.com. If you want to know what is happening in WA, use reiwa.com as a starting point. For more information about conditions on the ground in a particular suburb, speak to a local REIWA agent.  

So, what is happening in the Perth property market right now? The market is softening. As per our May commentary, homes are taking slightly longer to sell, buyers are more price conscious, and some investors are adopting a wait-and-see approach regarding the Federal Budget changes. It is very likely the rate of price growth will slow in the coming months. However, this does not indicate a downturn. When looking at those sensational headlines, we need to remember the conditions that have driven the WA market over the past few years remain. There is still an imbalance between supply and demand, and our economy is strong.

Suzanne Brown
REIWA President

Originally published by The West Real Estate, see thewest.com.au. Access may require a subscription.