Round the twist

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These days there is no shortage of housing market data available, and for the most part, it provides a guide of how the market has performed in the past – be it in the last month, the last quarter or the past 12 months. Everything I am reading at the moment as well as the day to day feel of the market tells me that the Perth property market is suffering and Wembley is no different!

The impact of the mining downturn in WA, weaker than expected economic growth, resulting in increased unemployment levels and a general lack of consumer and business confidence are all contributing to weaker sales volumes plus a decline in the median house price and median weekly rental.

While I don’t disagree with these facts, the problem with looking backwards is that it doesn’t necessarily help you understand what the market will do next and that is what you need to know to make an informed decision about when to buy or sell.  What we must not forget is that the residential property cycle is just that, a ‘cycle’ that moves through a period of boom to bust; from low capital growth/high rental yield, to high growth/low yield and back again. The key is to get in towards the lower point of the market, where we are now…to be prepared to buy counter cyclical when everyone else is backing off then be prepared to take a long term view in order to reap the greatest benefits.

I would think that based on what has happened in recent times we should see recovery late next year with solid and significant uplift a further two years from there.

Here are some of the classic signs that we are at the bottom of the property cycle:

  • A decline in prices is a telling sign, with the Perth median house price now sitting below the previous 2013 highs (currently at around $520,000) – There is general doom and gloom in the market and sellers are prepared to quit the property and move on. That is the market sentiment at present.
  • Building completions are higher than building commencements which is the first trigger for a shift in the balance of supply and demand.  Once the current stock of new and established dwellings is absorbed, demand will once again outweigh supply and as more buyers are competing for fewer properties, price will start to move upwards again.
  • A higher than average number of properties listed for rent, resulting in a higher vacancy rate – this extra stock is favouring tenants taking a wait and see approach about whether to rent or take advantage of the low interest rates and buy a property instead.

Reference: Hegney Property Group

As always; please call me on 0411 110 779 if you need any advise with your real estate needs.

Fast Facts

  • 26 properties for sale as of 21/03/2016.
  • 58 properties have sold or gone “Under Offer” in the past 6 months (Oct 2015- 21st march 2016).
  • Average days on market for current listings is 85 with 7 properties more than 100 days.
  • 10 properties of the current listings have had a price change.
  • Pangbourne and Harborne streets had the most sales in this period – 7 each.
  • Average sales price for this period was $1,082,377.

Current Listings

NoStreetBedsBathLand m2 (approx)List DateList PriceCurrent PriceDOMAgency
96Ruislip St5368822/10/2014Offers$1,799,000517M & M Property
237Ruislip St3253225/06/2015$999,000$925,000271Acton Central
67Lake Monger Drv531,16131/07/2015$2,300,000$2,300,000235buyMyplace
3/62Salvado Rd3292411/09/2015Mid $800,000's$800,000's193Abel McGrath the property people
25bSimper St323663/11/2015low millsFrom $980,000140Abel McGrath
2/85Reserve St32N/A20/11/2015From $975,000From $875,000123Able Mcgrath
10Bronzewing loop424139/12/2015$1.1 MHigh 900k104Airey Real Estate
157aJersey St21N/A17/12/2015$880,000$845,00096Acton Central
216Harborne St326716/01/2016AuctionOFFERS76House Real Estate
87Holland St526459/01/2016AuctionLow to Mid 1 Millions73Bexley's Real Estate
19Reserve St54N/A14/01/2016$1,275,000All Offers Presented68Leasing Elite
217bCambridge St3215613/02/2016$890,000$890,00038Acton Central
25bJukes Way3227114/02/2016From $1000000$875,00037Professionals Property Plus Real Estate
2/116Salvado Rd3221014/02/2016$995,000$950,00037Acton Central
145Jersey St3150016/02/2016From $799,00035Sage R/E
87bGregory St3241117/02/2016AuctionAuction34Acton Central
18Gregory St3169219/02/2016EDSLow to Mid 900k32Peard R/E
157bJersey St4157123/02/2016From $895,000From $895,00028Bexley's Real Estate
88Essex St216532/03/2016$895,000$995,00020Hive R/E
16Johnson St426713/03/2016$1,495,000$1,495,00019Michelle Hawkins Real Estate
69Keane St325547/03/2016$1,100,000$1,100,00015Real Estate Express
197Harborne St3167110/03/2016Low $800,000Low $800,00012Able Mcgrath
48aKeane St4251710/03/2016EDSEDS12Peard
165Daglish St3261711/03/2016$1,125,000$1,125,00011Optimus
192bSalvado Rd4237215/03/2016From $1,199,000From $1,199,0007Realmark
16St Vincents St5269915/03/2016From $1,000,000From $1,000,0007Wallace R/E

Sales October 1st 2015 – March 21st 2016

NoStreetBedsBathAsking PriceAgencySale PriceSale Date
50aReserve St42From $1,400,000Able Mcgrath$1,365,0007/12/2016
54Daglish St52AuctionAble Mcgrath$1,581,00012/03/2016
3Bronzewing Loop52N/AMichelle Hawkins R/E$1,025,0009/03/2016
141Herdsman Pde32N/AN/A$824,00024/02/2016
17bJukes Way32N/AActon Central$770,00018/02/2016
50aKeane St32N/AActon Central$867,50018/01/2016
22Pangbourne St32OffersAltitude$975,00018/01/2016
74Alexander St31$1,150,000Acton Central$970,0008/01/2016
39Barrett St21$895,000Growth Realty$820,0003/01/2016
8aBarrett St21From $900,000Benade Helman$855,00024/12/2015
3Pangbourne St31N/ABexleys Real Estate$730,00023/12/2015
90Ruislip St21$772,000Seniors Own Real Estate$772,00015/12/2015
139Gregory St52$1,599,000Acton Central$1,520,00014/12/2015
53Mckenzie St31$1,450,00014/12/2015
68Keane St42AuctionLJ Hooker$1,555,00013/12/2015
18Gregory St32End Date SalePeard Real Estate Leederville$985,00012/12/2015
18Harborne St32End Date SalePeard Real Estate Leederville$985,00012/12/2015
24Simper St31AuctionActon Central$1,350,00012/12/2015
47Daglish St43$1,325,000Bexleys Real Estate$1,310,0006/12/2015
43Keane St32N/APeter Locke$765,0004/12/2015
24bReserve St42AuctionActon Central$960,0003/12/2015
54Mercy Village32$950,000Seniors Own Real Estate$935,0002/12/2015
190Jersey St32End Date SalePeard Real Estate Leederville$870,00030/11/2015
57Harborne St42AuctionBexleys Real Estate$1,290,00028/11/2015
194Daglish St21N/AN/A$820,00025/11/2015
35aBarrett St32$1,695,000Murphys Estate Agents - Subiaco$1,550,00021/11/2015
116Harborne St32End Date salePeard Real Estate Leederville$950,00021/11/2015
173Harborne St21All OffersActon North$750,00017/11/2015
87Harborne St31$850,000-$950,000 Abode R/E$840,00016/11/2015
194Jersey St31N/AProperty Exchange$1,151,00012/11/2015
14Connolly St33Offers around $1,000,000Acton Central - Subiaco$850,00010/11/2015
43aPangbourne St32End Date SalePeard Real Estate Leederville$835,00010/11/2015
208Harborne St21End Date SalePeard Real Estate Leederville$780,0009/11/2015
43Reserve St42AuctionPeard Real Estate Leederville$1,800,0008/11/2015
48Nanson St32$1,485,000Benade Helman$1,200,0006/11/2015
96Daglish St31Offers $900k'sHallmark Realty$940,0004/11/2015
253Cambridge St21AuctionActon Central$1,240,00031/10/2015
164Harborne St31AuctionActon Central$750,00031/10/2015
88Mckenzie St32N/AN/A$950,00030/10/2015
37bPangbourne St42From mid $1msPerth Property Partners$1,410,00030/10/2015
10Keane St33N/AProperty Exchange$1,315,00029/10/2015
47Pangbourne St21N/ABexleys Real Estate$715,00027/10/2015
36Holland St32From $1,325,000 Bexleys Real Estate$1,296,97525/10/2015
43Pangbourne St31Best Offer above $875,000Squires Real Estate$900,00025/10/2015
119Nanson St41$1,200,000Abel McGrath Property Group$1,130,00023/10/2015
23Connolly St31OffersFrom $885,000Bellmerenda Real Estate$905,00019/10/2015
41Mckenzie St32Offers Over $1,275,000 The Property Exchange$1,290,00019/10/2015
63Holland St42Offers Over $1,495,000 The Property Exchange$1,480,00018/10/2015
39Pangbourne St42N/APerth Property Partners$1,535,00016/10/2015
50Gregory St21End Date SalePeard Real Estate Leederville$1,060,00015/10/2015
41aMarlow St32AuctionActon Central$1,210,00010/10/2015
96Mckenzie St31From $990,000Squires Real Estate$1,020,00010/10/2015
128aHerdsman Pde21N/AEmpire Property Solutions$788,0008/10/2015
200Ruislip St32Set Date SaleRealmark Coastal$1,200,0007/10/2015
44Herdsman Pde31$999,000Bexleys Real Estate$820,0005/10/2015
33Barrett St43N/ACaporn Young Estate Agents Pty Ltd$1,750,0003/10/2015
48aConnolly St32$810 to $828kProperty Exchange
18Scadden St42Fron $950,000Bexleys Real Estate$935,000
Source: REIWA Disclaimer: All information contained herein, including text, photographs and data, is given in good faith and is provided for guidance only. Whilst every effort is made to provide correct information all figures and information are subject to change without notice and Peard Real Estate makes no guarantees, undertakings or warranties concerning the accuracy or completeness of the information provided. You should take independent steps to verify the accuracy of the information prior to relying on that information. Peard Real Estate Leederville Pty Ltd T/A Peard Real Estate Leederville T/C RA64721.

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