November Market Update 2013

It has been a dramatically different year since we last posted an update on our website blog. With interest rates much higher this time last year, as well as approximately 15,000 – 18,000 properties on the market for sale. It is fair to say, the property market was a steady, but not glorious market place for sellers.

Turn over to November 2013, as Western Australia has seen one of the best selling and growth years since the 2000’s. Property in and around Cannington (6107) has grown in places as much as 20% or even 30% on the previous year.

This time last year 3 x 1 homes on developable properties were selling between $400,000 – $440,000 maybe up to $450,000. Now, some are selling in the $550,000 range, even being advertised and sold up to the $600,000 bracket and slightly higher.

Villa development has also jolted, with most 3 x 2 villa’s being sold June-December 2012 in the $380,000 – $420,000 range. Now we are selling these for $440,000 – $500,000.

Specifically, November 2013 for Ray White Cannington has been a quieter month, although slightly below average on the sales front, the reasoning behind this was coming off the back of Ray White Cannington’s best selling month in history for October 2013, with a total 33 property sales, grossing a total $16m in property and land sales for the single month.

Land is still very popular, with 2 land sales “off the plan” registering sales for November. The lower price bracket is still very popular, with properties between $350,000 – $450,000 still attracting very strong interest.

Listing stocks in Perth are slightly up, registering a total 9814 in metro listings. Buyers are still out in force, looking to secure property before the Christmas period, with interstate and families moving jobs/locations looking to buy and settle before the school year starts back up in February.

The rental market has softened slightly compared to months gone past, but with an office vacancy rate of 1.1%, the well trained and professional property managers that Ray White Cannington has, are doing a very good job at keeping properties tenanted.

We expect interest rates again to hold in the month of December, with the economy pushing in a positive direction, stability and confidence in the markets are likely to keep the Cash Rate held at 2.5%.

With property still being at an affordability level not seen since 2002, there are still plenty of buyers out in force looking for quality property to buy. First home buyers are still looking to enter the market, and are snapping up pretty much everything up to $500,000.

If you want to receive a market report for your suburb, email Cameron at cameron.smart@raywhite.com or give him a call on 0411 598 969.