The year that was – How the Perth real estate market performed in 2011

It’s no secret that property sales and market performance in Perth were below average in 2011. In fact, the downturn in the real estate market is being felt Australia wide. But even with this in mind, it’s not all doom and gloom for the West Australian real estate market with some analysts predicting growth in the last quarter and throughout 2012.

A recent report released by RP Data also predicts the soft housing market will begin to turn a corner in 2012. This optimism is possibly due to recent interest rate cuts being announced since Melbourne cup day. Economists are predicting that homeowners will be given a slight reprieve in the next 12 months as further cuts are expected to be announced.

With 90% of Australian mortgages currently set at a variable interest rate, any cuts to the rate will help take the financial strain off family’s who are already paying higher electricity, petrol and living costs.

There is also good news for investors with rental returns in Perth at an all time high. The apartment market in particular has seen growth as less money is being offered by banks. What this means is that investors who would usually borrow to secure a house are opting for a smaller loan and purchasing units and townhouses. So if you have an apartment or townhouse and are looking to liquidate, now is a great time to get it on the market, especially with the spike the holidays bring to the market.

While people might not think the holiday period is a good time to sell their property, RP Data suggests that there is a definite increase in buyers from November to February as buyers do their best to settle before the school and work year begins.

The real estate market in the northern coastal suburbs has seen a slight decline in 2011 but prices are still robust and steady thanks to the glorious seaside setting and overall property demand.  If you would like to talk to about buying and selling in your area over the holidays, contact Alycee Barrett today.