Perth house prices forecast to grow by 8% next year
One of the key questions we’re hearing lately from our clients and prospective clients is, “when will the property market in Perth drop?” And our response is generally, not any time soon if the current reports are anything to go by. Perth house prices are holding strong and look set to continue on their current trajectory.
If you want to buy a property for investment or improve your home, now is a great time to do so. With Perth house prices predicted to witness substantial growth in the coming two years, supported by rising demand, limited inventory, and projected population increase, it’s an excellent opportunity to evaluate your choices.
Perth property market predictions
Westpac has forecasted an 8.0% yearly increase in Perth’s real estate market for 2023, with a subsequent 8.0% rise in the following year.
Supply issues seem to be an ongoing, with property listings on REIWA‘s website falling to a 13-year in June.
“Perth house prices only drop when sellers need to sell more than buyers need to buy,” he said.
“In an environment where stock available is lower than it’s ever been before and demand is consistently higher than its ever been, there is no feasible argument for softening in the Perth market.”
Fleskens said the rate of price growth would be impacted by when the Reserve Bank decided to end its current cycle of interest rate rises and started to reduce rates again.
“In the meantime, the fundamentals of demand and supply remain the tightest they’ve ever been, on the backdrop of the tightest rental market we’ve ever seen,” he said.
CoreLogic’s Perth home value index increased 1.3 per cent in May and 2.4 per cent over the past three months.
Perth and Adelaide are the only capital cities showing growth year-on-year. Perth is the only city where home values are back to their highest levels. Other major cities have also improved recently.
What’s driving the growth?
Part of the reason many find Western Australia attractive is its booming economy.
The 2023-24 state budget expects the economy to grow by 4.25%, its best growth in nine years. Employers highly seek skilled workers, as the unemployment rate approaches a record low of 3.6% in June.
Moreover, as remote work gains more acceptance, more opportunities have arisen for Australians to leave their homes for Perth.
“The appeal increases when you consider that housing affordability is a big problem in many of our capital cities. It’s easier to buy a home in Perth because the prices are affordable for most people, according to Gavalas.
Perth’s median dwelling price in June was $598,000, much lower than Sydney’s median price of $1.082 million.
The fastest-growing city in Australia
New data from the Australian Bureau of Statistics reveals that more people are relocating to Perth. Western Australia’s population is growing faster than the rest of the country in 2022. The population of Perth is increasing by 2.3%, which is higher than the national growth rate of 1.9%. Perth’s population is increasing by 2.3%, higher than the national growth rate of 1.9%.
Considering everything, Perth house prices will not decrease soon. If you were waiting, now is a good time to think about your choices. If you’re renting, you might find that your monthly rent could be costing you more than a mortgage. If it’s time for a chat to see where things land for you right now with your borrowing capacity, we’re more than happy to help.
Owning a home can provide stability and a sense of security that renting may not offer. With interest rates currently low, now could be a great time to explore the possibility of becoming a homeowner.
Our team is here to guide you through the process and help you understand your options.
Before making big decisions, think about your finances and talk to a professional for advice. Being prepared is important. Let us help you navigate the world of home ownership and find the best solution for you.
How can a mortgage broker help me to refinance?
Refinancing may seem challenging, but it can be easier than you think with the help of a knowledgeable mortgage broker. Working with a mortgage broker can make the process smoother and less overwhelming. They can provide guidance and support throughout the refinancing process. With their expertise, you can navigate the refinancing process with confidence. In fact, the most common feedback we hear from our Perth home loan clients, is “that was easier than we thought!” and that is what we love to hear, because we really are here to make it easy for you.
In a nutshell, it’s our job to help you understand what home loan will work best for you, to get clear on your refinance options and if it’s a good option. From there we help to compare home loans, and negotiate with lenders on your behalf. If you’d like to discuss your options. Click here to get in touch today.
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All lending subject to status and lenders criteria. Terms & conditions apply. This document contains general information only. Your own personal circumstances have not been considered and you should seek independent financial advice prior to making any decision on a financial product.
