02 December 2022
National home values continued to fall in November, down -1.0% over the month to be -7.0%, or approximately -$53,400, below April’s peak.
The easing in the rate of decline is mostly emanating from Sydney and Melbourne but is also evident across many of the smaller capitals and most regional markets.
Across the capital cities, Brisbane and Hobart (both down -2.0%) led the monthly rate of decline in November, while at the other end of the spectrum, Perth values held firm and Darwin nudged 0.2% higher over the month. Perth and Darwin markets are yet to record any signs of a material reversal in housing prices.
PERTH
Currently, the median sales price is $540,000, whilst the median rental price is $520.00 per week.
REIWA CEO Cath Hart said the Perth index has hardly changed since May when interest rates started rising.
“The increases have added $760 per month to a $500,000 mortgage since May, while those on a mortgage of $1 million have seen repayments increase $1,520 per month,” she said.
“Rising interest rates have clearly impacted prices and borrowing capacity in the Eastern States. Perth, on the other hand, is very well-placed to weather the changes in interest rates.”
“The Western Australian economy and finances are among the strongest in the world. The population continues to grow, and WA has one of the lowest unemployment rates in the country. At a recent RBA meeting, they noted there were currently more ads for jobs in WA than active candidates.
“Meanwhile, Perth is the most affordable capital city in Australia. These factors are all supporting the property market and there is nothing right now indicating that house prices will fall drastically any time soon.”
“Perth houses are selling at a remarkable rate and have done so since the March quarter 2021,” Ms Hart said. While our members are reporting fewer people at home opens, they are still receiving multiple offers.
“Naturally some buyers have been impacted with reduced purchasing power, but demand is still high enough to see properties selling quickly.”
“Additionally, population growth continues to support the strong rental market,” Ms Hart said.
“Both interstate and overseas migration are in positive territory for the first time since 2013 and, as many migrants prefer to rent initially, this is seeing increased demand and competition for rentals. This in turn is maintaining pressure on prices – we do not expect prices to fall until the rental shortage eases.”
“The rental shortage remains a critical issue for the WA rental market,” Ms Hart said.
“Over the past 18 months, we have seen a significant reduction in the number of private rentals as investors sell to take advantage of capital growth or take their property off the rental market for their own use. We desperately need more investors!”
If you’ve had thoughts of selling or seeking assistance with the management of your property, our team are always available to discuss your options. Alternatively, if you would like to know more about the local market conditions and how it might affect your property, contact us today to chat.
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Information sourced from REIWA and CoreLogic
