We asked one of our trusted Perth real estate contacts, Derek Baston of Baston & Co. Property for his thoughts on the current state of the Perth real estate market. Here are his thoughts:
“It’s not a house it’s a home, a man’s home is his castle.” ~Darryl Kerrigan
“The safety and security of a roof over your head seems an impossible dream at present for many and Darryl Kerrigan would be horrified.
With rental availability, and available houses for sale also at historical lows, there is an element of panic in the housing market that we haven’t seen since the mining boom of 2006.
Combined with the pressure cooker creep of interest rates and inflation impacting on people’s disposable income it really feels like tough times on all fronts.
The government is struggling with what is a social and economic housing disaster, with the new home building pipeline totally choked. Building is not a realistic option, with high prices and indeterminate finish dates.
New housing models are springing up to address the situation, with purpose-built rent by the room accommodation, and tiny-house granny-flat accomodation becoming a viable solution for many in our market. Gone is the dream of a 1/4 acre, lemon trees and a chook yard.
Is there light at the end of the tunnel?
As long as the historically low rate of unemployment in WA continues and real wages remain at a national high there is little chance of the Perth real estate market slowing down. Realistically our rental and sale prices are still playing catch up with the other capitals.
I’m afraid tough times are ahead for those looking for a rental. Landlords of course are finally reaping a financial return, but it is scant joy after the tough COVID years.
If you are a Seller it really is your time to cash in, with housing stock levels in Perth at a 13 year low. Investors are again active as Buyers, chasing potential capital growth and rental yield. Tenants (who are able) have also turned into Buyers as it is a way of increasing their chance of securing a roof over their head. Not to mention the slew of people needing homes coming for the work on offer in WA.
Most are hunkered down and are weathering the housing storm. Many more are slipping through the cracks and facing the unthinkable, homelessness.
What will the John Carey, Western Australian Minister for Planning, Housing, Lands and Homelessness do?
It’s an almost impossible problem that will require the wisdom of Solomon.”
Thanks to Derek for his insights. We wonder what you think? Are you feeling the pain of rising interest rates? Are you considering selling? And if so, what will your next move be?
Get in touch to let us know if you’d like to discuss your current options with the current state of the Perth real estate market and possible financial outcomes .
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