Conventional wisdom says the ideal time to buy property is when the market is about to turn, and right now the Western Australia market is dishing up some of the best buying opportunities seen in years.
According to figures from CoreLogic, property prices have been soft in Perth since 2014 and as a result there has been a substantial improvement in housing affordability. Over the past five (3.7%) and 10 years (30.6%) gross household incomes in WA have increased at a faster rate than median prices over the past five (1.1%) and 10 years (11.6%). The result is that buyers are actively stepping back into the market to pick up some bargains and flex their market muscle.
Data from the Real Estate Institute of WA (REIWA) for instance, shows a far higher volume of houses are being sold compared to apartments. This is great news for buyers, especially first timers, who would often prefer to buy a house than a unit. With the current market offering buyers considerably more bang for their buck, now could be the time to start kicking some property goals.
That said, with a median apartment price of $390,600, Perth really is offering exceptional entry level value to first home buyers at a time when interest rates are still at record lows.
If you’re not convinced that now is a great time to buy either as a first home buyer, upgrader or investor, the REIWA say homes are selling for an average discount of 7.3% off the listed price. That makes it well worth being prepared to negotiate before assuming a property is out of your price range.
Across the WA capital, Perth’s most sought-after suburbs north of the river include Butler, Dianella and Morley. To the south of the Swan, Byford is hugely popular with buyers, with Canning Vale, Como and Willagee also attracting strong buyer interest.