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News

July Market Wrap



As it’s the end of the 21-22 financial year, it is always interesting to reflect on the year that has been and how it compared to the previous period. (FY20-21)


This time last year we were being totally surprised by the enormous appetite of buyers wanting to re-enter the property market…often with properties coming to market one weekend and gone within days! The feedback from buyers was it was so stressful, properties being advertised with no asking prices, and any “price guide” offered quite often being so “grey” it was hard to gauge what the owners would be happy to settle at and when a buyer did make an offer it was quite often in competition with several others.


The GOOD NEWS…towards the end of May…conditions have adjusted for buyers! Whilst I personally don’t feel this reprieve will last…for the time being the buying conditions are more favourable!


Despite the negative press we are seeing daily, read on below to see the following factors that are worth considering.



AFFORDABILITY

WA, based on the percentage of family income is currently very affordable in fact one of the most affordable in the country. (See below)


Western Australia

Housing affordability improved in the west in the September quarter, with a small 0.1 percentage point drop in the proportion of family income needed to meet mortgage repayments to 26.3 per cent.


New South Wales

NSW is the least affordable state or territory to meet loan repayments.

Housing affordability dropped in NSW in the September quarter, with the proportion of family income set aside for mortgage repayments climbing 1.2 per cent to 44.7 per cent.


Victoria

The proportion of family income needed to meet loan repayments rose 1.6 per cent in the September quarter to 37.2 per cent.


Source: REB


MEDIAN PRICE

After completing some research, it appears the Sydney market has had a substantial increase in its median price since the GFC and Perth has not.


PERTH: June-2008 $455,000 , SYDNEY: Jun-2008 $517,000… PERTH: June-2022 $558,644 SYDNEY: June-2022 $1,110,660…if you are a believer that the Perth Property market follows suit (which research shows it does) albeit counter-cyclical…then we have a long way to go!


SOURCE: Michael Yardney June 29, 2022


CONSUMER CONFIDENCE

The last piece in the property market jigsaw is consumer confidence, which is largely driven by the media(as a culmination of talk around interest rates, employment, inflation and other geopolitical issues.)


Based on the attendance at home opens and enquiries for properties and the buyer’s willingness to purchase…I get the feeling Consumer Confidence is currently lacking however as we move towards a new norm in interest rates, costs of building or renovating- I predict a change towards the end of the September Quarter.

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