Reflecting on 2024: A Year of Unprecedented Demand
Last year, 2024, was a standout period for the Perth property market. As reported by The West Real Estate, the landscape was characterized by robust demand, significant price appreciation, and properties moving at an exceptionally rapid pace. Many sellers experienced the thrill of multiple offers at the first home open, often exceeding their asking prices. If you knew someone selling then, their success story likely involved a quick, high-value sale.
The Winds of Change: What’s Different Now?
However, the market dynamics in Perth have evolved. While the fundamental desire for property remains strong, the intense, almost frantic conditions of 2024 have softened considerably. Several factors contribute to this shift:
- Slowing Population Growth: The rate at which Perth’s population is increasing has decelerated.
- Increased Housing Supply: A notable influx of new listings towards the end of last year, and a consistent flow of properties onto the market since, have provided buyers with more choices. This increased inventory naturally eases competitive pressure.
- More Deliberate Buyers: With greater selection and a less urgent atmosphere, buyers are now taking more time to consider their options and conduct thorough due diligence.
- Financial Prudence: Real Estate Institute of Western Australia (REIWA) members indicate a change in buyer behavior. The “fear of missing out” (FOMO) that drove buyers to maximize their borrowing capacity a year ago has been replaced by a more cautious approach, with buyers focusing on what they can comfortably afford.
Implications for Today’s Sellers
If you’re looking to sell your property in the current market, it’s crucial to have realistic expectations. The experience is likely to differ significantly from those who sold in the booming conditions of 2024.
- Slower Sales Pace: Expect properties to take longer to sell compared to the rapid transactions witnessed last year.
- Moderated Price Growth: The strong price growth of 2024 has slowed, and in some areas, sellers may need to consider adjusting their initial asking price to secure a sale.
- The End of Automatic Success: Your property may not sell at the first home open, and achieving the exceptional prices seen last year is less common.
Key Takeaways for Sellers in the Current Market
In this evolving landscape, two factors have become paramount for sellers:
- Strategic Pricing: The price your neighbor achieved a year ago is no longer a reliable benchmark. It’s essential to align your pricing strategy with current market conditions. Overpriced properties risk being overlooked, leading to longer time on the market and potential price reductions later.
- Impeccable Presentation: With buyers having more time and options, the presentation of your home is critical. REIWA members report that well-presented properties continue to attract good interest and sell within reasonable timeframes. Properties that lack appeal are likely to see less buyer engagement and take longer to sell.
By understanding these shifts and focusing on strategic pricing and excellent presentation, sellers can navigate the current Perth property market effectively and achieve successful outcomes.
⬆️Sales
Median Value
Homes: $775,000 ( ⬆️$15,000)
Units: $525,000 (⬆️ $15,000)
Average Days on Market: 14 (⬆️ 1)
⬆️Rentals
Median Rent
Homes: $680 / week (⬆️ $0)
Units: $650 / week (⬆️ $0)
Vacancy Rate: 2.0%
WhatsApp Josh on +61 (0)488038805 or josh@domeproperties.com.au for further information for a confidential discussion regarding buying, selling or renting
