Perth’s median house price increased 1.6 per cent to $518,000 during November, according to reiwa.com data.
REIWA President Damian Collins said this was the second month in a row Perth’s median house price had shown improvement.
“Perth’s median house price has been fairly flat throughout 2018, so it’s pleasing to see two consecutive months of median price growth as we head into the New Year.
“reiwa.com analysis shows there was a shift in the composition of sales in November, with a greater proportion of transactions occurring above $1 million than there were in October. This has contributed to the increase we’ve seen in Perth’s median house price this month,” Mr Collins said.
The top selling suburbs in November were Willetton, Baldivis, Canning Vale, Duncraig and Ellenbrook, while reiwa.com data shows Quinns Rock, Willetton, Doubleview, Leeming and Wellard had the biggest improvement in sales volumes (percentage wise).
“While overall sales activity in the Perth Metro region remains subdued, numerous suburbs bucked this trend during November to record notable improvements in sales,” Mr.
Listings for sale were five per cent higher at the end of November than they were at the end of October.
“It’s not unusual to observe increases in listing stock at this time of year. Sellers are returning to the market following the lull of the winter period and wanting to get in quick before the holiday season ramps up. With listing stock rising, buyers have a good supply of choice available to them, making it a very good time to buy,” Mr Collins said.
Perth’s overall median rent price continues to hold at $350 per week, however reiwa.com data shows there was a small $5 increase to the median unit rent price in November.
“While the overall median and median house rent ($360 per week) were stable, pleasingly the median unit rent did increase to $330 per week during November. Additionally, when we compare the November 2018 median unit rent to three months ago (August 2018), reiwa.com data shows the unit rent has increased by $10 per week,” Mr Collins said.
The five suburbs which experienced the biggest increase in leasing activity (percentage wise) during November were Kardinya, Coolbellup, Bedford, Kelmscott and Harrisdale, while Perth, East Perth, Scarborough, South Perth and Baldivis had the most number of leased properties.
Listings for rent were stable in November, remaining below 7,000 – a significant 25 per cent decline compared to the same time last year.
“The rapid decline in listings we’ve observed this year is a key driver behind the rental market’s recovery. It has also had a significant impact on the vacancy rate, which continues to decline and now sits at 3.3 per cent,” Mr Collins said.
In the middle of last year, several top economists were predicting house prices to in fact increase in 2018 – one forecasting as much as nine per cent, but since then house prices have experienced their largest and longest peak to trough decline in recent history spurred on by increased housing affordability constraints, a banking royal commission with a microscope on lending standards, and APRA’s restrictions on new investor loans.
Now that the price falls are well and truly in motion, all five economists recently surveyed by The Australian Financial Review forecast national house values would continue to drop in 2019, with Sydney, the epicentre of the downturn, dragging down the national average.
Stephen Koukoulas, of Market Economics, was most downbeat about the state of the property market, with expectations prices would fall in Sydney between 7.5 per cent and 10 per cent in 2019 after a drop of 7.5 per cent in 2018.
Nationally, he predicted house prices would fall by between five per cent and 7.5 per cent.
“From the 3rd quarter in 2019, I am forecasting some stability in prices as supply and demand forces underpin new activity,” Mr Koukoulas said.
By then he expected cashed-up first-home buyers would be lining up to take advantage of increased levels of affordability.
A key consideration for Geordan Murray, HIA acting principal economist, is that while population growth is slowing, it remains strong and will ensure ongoing demand for housing throughout the cycle.
“The labour market has been improving and is projected to continue to do so. This should contribute to further modest improvements in wage growth,” Mr Murray said.
“There are risks around borrowing costs.”
A key issue mentioned by the economists was that at some point in 2019 is whether the RBA may be forced to consider another interest rate cut if the slump in home prices starts to impact consumer spending and the outlook for inflation.
While each economist offered a variation on how much prices would fall in 2019, each attributed the tightening of credit, rising mortgage rates, and a surge in new supply to the further softening of the market.
To see each economist’s predictions, read the full article on the Australian Financial Review. Please note you will need to be an AFR subscriber to read the full article.
We would love 💖 you to come and a glass of wine and some nibbles at the opening night!!
See you there?
Please let me know and I will look out for you.
See you there
As the end of your tenancy agreement approaches, it can be a very tedious process dealing with your bond refund.
Ideally, most tenants will receive their bond money back at the end of the tenancy, once the real estate agent inspects the property against the Property Condition Report (PCR), essentially ensuring the premises is in the same condition as it was at the commencement of the lease, taking into account fair wear and tear.
However, if the state of the property does not comply with the PCR report, then the property manager or landlord has the right to claim money from the bond to cover these expenses, which could be anything from broken door handles to garden maintenance.
We want all tenants to be confident when it comes to getting their bond back, so to take the guesswork out of your end of lease inspection, here is some advice when it comes to getting your full bond back.
Taking the time to fill out the initial PCR when first moving in can save you a lot of money and hassle when it comes to your last inspection. When moving into a new place, the last thing many tenants want to do is diligently inspect every nook and cranny of the house, but it’s these minor issues that become the very cause of disagreements between the agent and the tenant during the final inspection.
Use the initial PCR as a reference, so you and the managing agent have something to compare when it comes to the final inspection. It can be useful to take photos and be as specific as possible.
Communication is key to being a good tenant. If there is something on the property that needs attention, make sure to tell the agent sooner rather than later. Building a good relationship with the property manager or landlord and having open honest communication will ease pressure on both parties when it comes to you vacating the property.
Stay educated with the law surrounding your tenancy. This will lower your chances of being short-sighted with any unexpected issues down the track.
You can visit The Department of Mines, Industry Regulation and Safety website for more information on the laws affecting tenants.
It might seem obvious, but you’d be surprised at what the result of leaving the drain untouched or not vacuuming under the couch during the length of your tenancy could be. By regularly cleaning your house, you lower the risks of growing mould, stains or lingering smells. If you have carpets, maintaining them is also important as replacing carpet can cost a fortune if stained or damaged.
Again, knowing what to expect will save you from any unwanted surprises when it comes to getting your bond back. Understanding the process will make things easier for both you, the real estate agent and the landlord.
In the event of an unresolved dispute, the courts will ultimately decide the allocation of bond monies.
If you make every effort to return the property to the owner in the best possible manner at the end of the tenancy, you are in a good position to have your bond refunded in full.
We had a great lunch with our hostess Maria Antonia cooking a mean Bobo de Camarão an authentic Brazilian dish. A creamy prawn dish. You can check out a recipe here.
Her care and presentation on table setting was very elegant.
It’s great to see what other people do so when my time comes for Christmas entertaining my SIN.ers friends I have plenty of inspiration.
Every time we have lunch at my friends houses I am impressed with the effort they make in being the best hosts. It can be a big job, hosting 15+ people in your home!
All of the SIN.ers are great cooks except me who rarely cooks anything. Thankfully my husband picks up the slack!
I only have 2 dishes that I call myself an expert on:
Roast Turkey (Canadian style) and Brazilian pudding (flan). That is all! I might not cook these too often, but I do cook them well!
But I think all the members of SINers are great cooks, whether they specialise in savoury dishes or dessert. We have had some absolutely incredible dishes on occasion!
REIWA is disappointed the members of WA Parliament have ignored the concerns of the property industry by voting to pass the Foreign Owner Duty Surcharge tax.
REIWA President Damian Collins said the new tax would likely have significant consequences for the WA property market, which was just starting to show signs of a recovery.
“The WA property market has endured a challenging few years. We are just starting to see the green shoots of a recovery on the horizon. A new tax will only serve to further dampen our already weak market and deter much needed foreign investment from the state.
“WA has the lowest level of foreign investment of any state, second only to the Northern Territory. This ill-timed tax will place an additional barrier for people wanting to move to WA and set up a home.
“Although foreign buyers only make up a small proportion of the WA market, it’s a proportion we can’t afford to lose. Especially at a time when the market is showing signs of stabilising,” Mr Collins said.
Foreign buyers of residential properties in Western Australia will pay a seven per cent surcharge from 1 January 2019.
Today our Craft group is enjoying a Bus ride to Kings Park and having a pic Nic there.
pictures are worth more than a thousand words.
Here they are:
My circumstance was quite happy I thought after renting a home by the sea for almost ten years, then my landlord decided to sell. I felt nauseous as how was I going to find accommodation, who would grant me a loan-a single mum with two kids and a casual income, no way I thought and…Read More→