What do recent changes in the market mean for sellers? 

As seen in The West Real Estate

The Perth property market has changed. Properties are coming to market in reasonable numbers, the rate of price growth has slowed, and homes are taking longer to sell. Three interest rate rises have reduced buyers’ borrowing capacity and they are more price conscious.

What does this mean for sellers? 

Recently, I highlighted the importance of going local for market insights. What is happening on the east coast is not relevant to Perth. If you are selling, you need to get current, on-the-ground information from REIWA agents active in your area.

For example, you may hear reports that attendance at home opens is low, or that agents are still seeing huge numbers. Both statements can be true, and within the same suburb. You need a local agent to tell you why.

Members tell us that well-positioned homes are receiving strong interest and good offers. Well positioned can mean anything from being away from a main road, closer to a lifestyle hub, or on the ‘better’ side of a dividing road, such as the river side of Stirling Highway in Nedlands, or the south-western corner of Wembley Downs bordered by Hale and Weaponess roads. As buyers now have more choice, properties they consider to be less ideally positioned are attracting less interest.

Presentation has also become more necessary than it was during the frenzied conditions seen earlier this year. Buyers are more selective and properties that need work are less appealing.

You will need to revise your expectations and price your property for today’s market, not what you might have received three months ago.

To quote one of our members, ‘the days of one-and-done are gone’. You should not expect your home to sell at the first home open. Your property is likely to take several weeks to sell, or longer, depending on your area and the level of buyer interest.

It is fair to say you can expect fewer offers. In some cases, the first offer you get may be the best. Be guided by your agent as to whether it’s a reasonable offer based on market conditions in your area and buyer feedback about your property.

Buyer demographics have also changed. Investor activity has slowed in the wake of the Federal Budget’s taxation changes. For me, the biggest surprise has been the decline in first home buyer activity and enquiry. The Budget announcements seem to have made them more cautious rather than more active. This may not be the case for every agent. Some members say they are finally seeing some downsizer activity due to a surge in cashed-up older buyers.

In summary, the market has changed and every suburb is different, so be guided by your REIWA agent.

Suzanne Brown
REIWA President

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