The Real Estate Institute of Western Australia has dismissed claims by BIS Shrapnel, that house prices in Perth, WA would grow by around 7 per cent each year for the next three years.
REIWA President Alan Bourke said this prediction was not supported by current trends in real estate data.
“REIWA data is showing that the number of properties on the market in Perth has jumped by 32 per cent since January, with more than 14,000 listings currently up for sale in a sluggish market,” said Mr Bourke.
Mr Bourke said the Perth rental market was also quite soft.He said rents have remained steady for more than a year and a half and that the vacancy rate of available properties is hovering around 4.
“The reality is that the uncertain economic conditions overseas, coupled with concern about the resources super tax and a lowering of the expected migration intake over the next year is making the local market very flat, with many buyers waiting until after winter and the looming Federal election to see how things pan out.
“I expect that the Perth property market will be very steady for at least the next year, then after that we may start to see some modest growth, but nothing like 22 per cent over three years, that just isn’t realistic under current conditions,” Mr Bourke said.
Mr Bourke said Perth had become a buyer’s market. Home opens seeing many people doing the rounds to make sure they saw everything in their price range to ensure the best deal.
“Sellers need to understand that the Perth market will be flat for at least a year, so it’s important to listen to your agent about setting the right price for a quick sale,” Mr Bourke said.
