I'm sure we have all heard this before, but taking offers and leveraging to get more and more seems to be the normal atm in this seller's market.
My questions are:
what will slow this down?
Is the WA housing market propped up and tied to the iron ore price, will we see a big drop when iron ore comes down?
Predictions on how long this FOMO heat will go on for?
East coasters - Are you moving over to WA for cheap housing and good dealing with covid?
Yer that was a good decision, buying that that peak, prices have only just returned to that after 10 years.
Rental returns are high right now
Lowest vacancy rates in 40 years, less than 1% available.
The Pandemic slowed it down. Other iron ore producers are unable to supply because of workforce issues.
I am also in the market in the Western suburbs. My REIWA alerts have dried up to one a week, used to be one or two a day.
Many properties are not even reaching the open market before going under offer.
In my area we have received 2 unsolicited letters from people wanting to buy on the street. Doesn't sound like a scam if going through usual channels.
This will end soon hopefully with interest rate hikes.
You can get fixed rates of 2.07% for 4 years. I don't think they are going to hike them anytime soon. Off market does seem to be popular and still reaching record highs.
This is what the media is going on about, spruiking what the RBA's stance is. However, ask any economist and handing out $200 billion will not come without inflation. Add to this rapidly rising bond yields and it'll be a pincer like movement on the RBA's rates.
Yes the RBA can state that they're not going to move, but unfortunately they don't dictate international market forces.
low rates are here to stay for the next few years easily imo.
This is the correct answer.
lol WA
East coasters - Are you moving over to WA for cheap housing and good dealing with covid?
No.
Victoria and NSW were always going to have issues with COVID because they have the main international airports. Hardly any international arrivals into Qld, WA, etc. people who arrive quarantine in Vic or mostly NSW.
Some OzB is saying that prices will drop by the end of the year. That is one Xmas present that they won't get this year.
What are they mining in WA? Alternate Iron ore mines will take time to set up, it might be a few years.
I doubt the mortgage default sell off six months after job seeker finishes will affect WA too badly.
It’s the construction of mines infrastructure that is causing labour demand (= “boom”).
Boom recedes when mine operating regularly
I don’t know what they’re mining but they making good use of it.
https://www.abc.net.au/news/2021-03-02/booming-perth-propert…
Jessica Hawes and her fiance Callan Bennett sold their Parmelia property in Perth's south last week for $115,000 above what they paid for it in September 2019, thanks to a huge house price boom in the area and across the country.
The City of Kwinana, which includes Parmelia, recorded the biggest increase in property value in Perth in the last 12 months, up by nearly 11 per cent, according to CoreLogic.
https://thewest.com.au/lifestyle/real-estate/why-we-are-seei…
Christopher’s Housing Boom and Bust Report 2021 by SQM Research – a residential property data firm – forecast that dwelling prices for Perth would rise by eight per cent to 12 per cent this year. In fact, should all go well with the vaccine and everything returns to a semblance of normalcy, SQM Research predicts Perth prices will rise by 10-15 per cent.
COVID moratorium ends, landlords evict all the shit tenants looking to pump up the prices, supply returns to the market, prices go down.
COVID moratorium ends, landlords evict all the shit tenants looking to pump up the prices, rental prices skyrocket, tenants look to buy instead of rent creating more demand. Supply trickles in unable to keep up with demand. Over time (I wish I knew how long) Supply catches up. Prices drop
Real estate is hot all over the country, not just WA
Exactly! It's not a pure WA phenomenon. I am in the process of settling on a property on the east coast and it's crazy right now. You basically have to put an offer in as soon as you see something you like and expect to have to put multiple offers in to secure a property. There's very little stock and lots of people showing up to open houses (in the area I am buying in, anyway).
It's definitely a sellers market in at least some, maybe many, parts of the east coast as well. Real Estate agents are very happy right now!
It’s cheaper to pay a mortgage than to rent. That’s the simple maths right now but it won’t last forever.
I would be very careful about buying because of the iron ore price. It WILL come down AND the Government will keep insulting China. Part of the reason for the high iron ore price is the pandemic has all but shut down other countries that produce iron ore. Once this passes China will go there and the iron ore boom for Australia could be over for a long time to come. However other commodities are needed in the green energy revolution like nickel and cobalt and copper etc so there may be some legs yet. But you must always remember the lessons of the past. If you buy at the top of the market you need to be able to sit on your assets for a long time. I wouldn’t invest in property in WA for capital gains - ever.
agreed, hard to time but it must be more than a year before we still this boom ending.
IMHO i'd say Perth's current housing market is on par with wages and affordability. It's just when you look at Sydney and Melbourne it seems underpriced, when reality it's only just reasonable.
Yes rates are at record lows and irresponsible lending is at all time highs around Australia, we seem to think that iron ore at $120 a tonne will last forever, unfortunately it's probably got another 12 months in it before Brazil's back to full production and then in 2 years time the African mines start up and then it's game over for the Iron ore cartel of Australia.
I feel this is just a knee jerk reaction to being cooped up all year with nothing to spend money on. (However i am seriously considering buying into the hype this time).
Brazil won't get enough jabs in 2021 to do anything. Only 0.01 % of their population may get a shot in the comings months and that isn't going to mining workers.
What most articles seem to miss is that the rental market in Australia is made up of around 32% rental properties.
https://www.aihw.gov.au/reports/australias-welfare/home-owne…
Where household tenure was known:
67% (5.4 million households) were home owners:
- 32% (2.6 million households) without a mortgage
- 35% (2.9 million households) with a mortgage
32% (2.6 million households) were renters; where landlord type was known:
- 26% (2.1 million households) were renting from private landlords
- 3.7% (300,000 households) from state or territory housing authorities
- 1.3% (105,500 households) from other landlords
With the rent moratorium for the last 12 months it means landlords cannot evict tenants or increase rents so I suspect most have just had to wait it out until the end of March 2021.
It seems to me we are currently in a situation where somewhere around 30% of the housing stock has been taken out of the market until the end of March 2021 so that is likely going to affect stock levels and force people to outbid each other on the remaining houses likely to be owner occupiers.
I would think that after March 2021 we should start seeing the market normalise and stock levels increase for both for sale and rentals.
so would you sell if you were made an offer on a home? generally speaking i mean..but sell now buying in a month or so might be good?
Perth housing market has always been volatile. This time around a large part is due to restrictions on FIFO workers commuting from the Eastern States. Employers are reluctant to get shafted by snap lockdowns so are insisting on them being Perth based. Prices to buy were in the Doldrums a bit due to the previous down turn.
You do get good value for money buying there though when you look at say 1.5 mill will buy you in a decent suburb in Perth compared to Melbourne or Sydney
West Australians/Perthites should have massive share portfolios, huge super funds or couple of investment properties - but they generally don’t.
Spent Jan/Feb there - housing half Melbourne’s prices.
So the housing savings should be reinvested in appreciating income producing assets.
Fuel is cheaper, supermarket prices in Kununurra same as east coast.
What will slow it down? another mining bust…. ;)
Man, i nearly bought a unit in perth back in the boom. Best decision ive made to date not going ahead with it.