Navigating the Perth Housing Market: A Guide for Home Buyers
Are you considering buying a home in Perth? Housing values in Perth have been some of the most resilient of all capital cities in Australia, with a 0.5% rise in value through April. Perth offers a vibrant lifestyle and a strong housing market. However, before you make one of the biggest investments of your life, it’s crucial to understand the current state of the Perth housing market. In this post, we will provide you with an overview of the market, highlight key trends, and explore the importance of building inspections in Perth. By the end, you’ll be well-equipped to make informed decisions as you embark on your home buying journey.
Perth Housing Market Overview
The Perth housing market has experienced notable growth and stability in recent years. According to the latest data, the median house price in Perth is around $593,000, making it an attractive option for investors looking for affordability compared to other major Australian cities. The Perth market is known for its diverse range of property types, from modern inner-city apartments to extremely spacious suburban homes.
While Perth has seen moderate price growth in recent years and has remained relatively stable throughout the recent interest rate hikes, it’s essential to conduct thorough research and due diligence before making any commitments. Market conditions can vary across suburbs and property types, so it’s crucial to stay informed about local trends and property values.
Key Trends in the Perth Housing Market
According to a recent data release from reiwa.com, the top performing suburbs for house price growth in April were Victoria Park (up 3 per cent to $782,500), Coodanup (up 2.8 per cent to $365,000), Eglinton (up 2.7 per cent to $475,000), Quinns Rocks (up 2.4 per cent to $610,000) and Ocean Reef (up 2.1 per cent to $$970,000). Dawesville, Stirling, Golden Bay, Bentley and Yokine also recorded moderate growth.
There were 6,570 properties for sale on reiwa.com at the end of April. This is a 7.8 per cent decrease from March and 18.5 per cent lower than the same time last year. Although these figures don’t seem favourable, REIWA CEO Cath Hart provides some insight.
“April traditionally has less market activity due to the number of holidays during the month and the last time we saw the number of properties available for sale at this level was in June 2010.”
“While this sounds concerning, properties are still coming to the market at reasonable levels. It is the speed of sales that is keeping this number low. Right now sales are tracking at the same level as new listings, which essentially means that as one property comes to the market, another sells.”
The Perth rental market has seen a significant increase in demand. Vacancy rates are at historical lows which have placed unprecedented pressure on rental values and the renting population. There were 1,977 properties for rent on reiwa.com at the end of April, a 3 per cent increase on March, but still 20.6 per cent lower than April 2022.
Rental listings remain below 2,000 and have been at this level since August 2022. This situation is expected ease over the next 12 months, based on the number of new residences currently under construction. However, with Builders struggling to adhere to their timelines or even stay in business, this is looking less clear every day.
Importance of Building Inspections in Perth
Building inspections are a critical component of the home buying process, particularly in Perth’s dynamic market. These inspections play a crucial role in identifying potential issues and risks associated with a property, ranging from minor concerns like leaky pipes to significant structural defects. By completing a thorough building inspection before finalising a purchase, home buyers can make informed decisions, avoiding unexpected expenses and potential hazards.
In Western Australia, where properties are subject to varying climate conditions and potential hazards, such as termites or extreme weather-related damage, building inspections become even more vital. Hiring a qualified and licenced building inspector in Perth who understands the local housing market and building regulations is key to ensuring a thorough evaluation of the property. They should also be readily available to address any questions or concerns you may have and offer guidance on how to rectify the identified problems.
As the Perth housing market continues to thrive, it’s crucial for prospective home buyers to stay informed about market trends and take necessary precautions. Building inspections are an essential part of the home buying process, providing valuable insights into a property’s condition and potential maintenance issues. By partnering with reputable Perth building inspectors such as Total Home Inspections, you can ensure a thorough evaluation of your prospective property and make informed decisions. With careful research and the right professionals by your side, you’ll be well-equipped to navigate the Perth housing market and find the perfect home that meets your needs and budget.