Appraisal numbers in Western Australia rose 10 per cent in January, which indicates a greater number of owners could be considering selling this year, says Craig Abbott, general manager WA, Raine & Horne.
The unique combination of fewer properties for sale and a 10 per cent surge in property appraisals, gives Perth property owners the opportunity to act out their new year’s real estate resolutions, said leading property group Raine & Horne.
“Investment bank AMP Capital recently revealed that Perth property market values have bottomed, while the numbers of properties for sale is an average 7 per cent lower than January 2017,” said Craig Abbott, General Manager WA, Raine & Horne.
“Owners now have perfect storm of price support and less competition from other properties.
“That said, appraisals are up by 10 per cent, which indicates that more owners have resolved to find out about the value of their properties with a possible view to a sale this year.”
Alec Marra, Principal of Raine & Horne Bunbury said that while owners could wait for values to improve before listing their properties for sale, if they intend to buy another property, it could be best to make the move now.
“There’s a misnomer that there is no difference selling and buying in the same market, whether the real estate market is at the top or bottom of the cycle,” said Marra.
“However, if you buy and sell when property values are lower, you’ll pay a smaller amount of government taxes such as stamp duty, possibly need to borrow less money from a bank, and you’ll avoid the extra costs such as lenders mortgage insurance.
“The costs of selling and buying a property can be thousands of dollars less are less when property prices are lower.”
In a strong sign for the future, Marra said that developers are investing confidently in Bunbury, which is 180 kilometres south of Perth and has a population of about 31,000.
“A $12 million redevelopment of the Dolphin Discovery Centre has been completed on the Bunbury foreshore, a seven-storey residential unit complex on the north shore has been finalised along with plenty of commercial construction, as developers continue to take advantage of lower interest rates and prices.”
With conditions improving for owners, Marra said that buyers still had plenty of opportunities to secure a Bunbury property.
“Our median house price is $360,000, which compares favourably to the boom years of half a decade ago,” said Mr Marra.
“But these prices won’t last, and buyers and investors need to get their skates on to take advantage of Bunbury’s affordable real estate prices.”