prowest 
It has certainly been an interesting year in Real Estate this year we’ve seen some big changes in the market with market levels going from the bottom to now receiving reported figures of that similar to back in 2013.
We have included below some information on how November particularly, performed in the market for both the Sales and Rentals across Perth, information below has been sourced and altered from REIWA reports & articles.
SALES
Starting with sales, by the end of the month there was a reported figure of 1,042 sales transactions which was 19% more transactions than those reported last week.
In November 2019, REIWA members reported a much lower figure of around 639 transactions within the first week of November.
Although these transactions levels have proceeded to grow, the actual stock levels of available listings is slowly reducing and is has gotten to a 13-year low with little over 10,000 properties available this week, 1% lower than mid-November 2020.
With REIWA talking to agents ‘on the ground’ it said that it isn’t uncommon for sellers to be receiving multiple offers on their property, some areas are also being offered more than the advertised price, however we do see a lot of buyers in our local market trying to ‘low-ball’ the asking price by making low offers. Residential stock is in high demand at the moment, with more and more buyers entering the market, especially as we are closing in on a new school year.
Stock levels hopefully will start to pick up after Christmas to be able to compete with the high demand of buyers.
REIWA president Mr Damien Collins says.
“With record low interest rates looking like they will be around for a while, many buyers are finding it cheaper to buy than rent. This is one of the reasons why we can expect sales activity in 2021 to continue to gain momentum,”
RENTALS
What a time to be an investor! Perth’s vacancy levels are at an all-time low with the vacancy rate now BELOW 1% which Covid has contributed to as in WA where we have seen population growth, with more than 1,000 international arrivals per week. Plus with the domestic borders opening, the market is likely to get more and more competitive.
At Professionals Prowest Real Estate our property managers have been experiencing 20+ home open attendees (pre-registered) AND multiple applications coming in per property with some receiving up to 10+ applications. In the last 3 months the majority of any listed stock at Professionals Prowest R/E is receiving a successful applicant from the first home open.
This demand has encouraged further growth in prices across Perth residential areas, with some applicants offering more than the advertised price. With these current conditions unlikely to soften, this level of competition is likely to continue into 2021.
As of the last week of November 2020, REIWA reports that there were 2,875 properties available to rent which was a steady number throughout November, Currently this is around 59% lower in comparison to November2019 where we saw well over 5,900 properties available on the market.
Price
Due to the limited amount of stock in the rental market, this has resulted in a substantial increase in the overall median price. This remained steady at $350/week all year, it has now reportedly increased to a high $380/week an astonishing 8.5% increase, again making this potentially a good profitable time to list your property for rent. However, we do suggest if you’re thinking of leasing out your property seek Professional advise as to where your property sits in the market and how it compares to those that have recently leased in the surrounding areas.
For a FREE assessment of your properties worth, please call us on 08 9457 5733 to speak with one of our experienced, friendly team members.
Information in this article has been sourced from reiwa.com latest news as well as figures from our own office data.
