The Perth property market; fit but putting on weight.
Why The Perth Property Market Is Like An Off-Season Footy Player
Last week, I described the market as being like a pretzel; tasty but bent out of shape by government grants.
This week it’s like an off season footy player. It’s still very fit but it’s starting to put on weight in the shape of increased listing stock.
But before we go too far, let’s rewind the tape for a bit.
This time last year there were just under 12,000 listings for sale across Perth. At that level the market was decent with plenty to choose from but not so many that sellers were having a hard time making a sale.
To torture the footy analogy, the market was kicking the dew off the grass in the Sunday league.
But role forward to a couple of months ago and suddenly the market had decided it wanted to play at the elite level.
Listing stock came down to a super lean 8,600 properties. Truthfully, you can’t get leaner than that without getting sick.
And it seems the market has heeded the warning signs. Listing stock has gone up by 4% over the last 4 weeks. If that trend continues – which it won’t – we’ll be back to 12,000 listings before you can say “Freo will win the flag.”
And of course you’re not going to say that because they won’t and neither will the market get that fat. Or not for the foreseeable future.
Right now it’s having a few beers during the off season with the weight being added by investors taking profits that haven’t been seen since 2014.
Like any elite athlete the market will continue to perform well for months to come, despite the extra stock. Buyers will have more choice, which will translate into some slight downward pressure on price growth.
Yet prices will continue to rise with sellers receiving multiple offers.
Yes, the market might be putting on some weight but it’s still very fit and healthy.
Where do you see the market heading?