Property Market Recap: What Has 2018 Held For First Home Buyers?
If you’ve been paying attention to the news over the past year then you’ve probably heard that things have been pretty grim in the Perth property market. Things have descended from the dizzy heights of the mining boom and reality has well and truly set in.
All of this has been pretty bad news if you bought your house 10 or more years ago, but what about if you’re looking at getting into your first home? Well, it turns out that 2018 has been pretty fantastic for first home buyers.
The State Of The Market
First we’ll have a look at the current condition of the market. It’s no secret that property prices have dropped in recent years. According to propertyupdate.com.au, “the three months ending in July saw Perth values fall by 1.5%”. Similarly, The ABC reported in September that, “house prices across the Perth metropolitan area have dropped in real terms by 24% over the past ten years.”
In addition to this, prices are unlikely to rise sharply any time soon. According to the same report from propertyreport.com.au, “we remain of the view that the Perth housing market is either at the bottom of its downturn or very close to it.” It also went on to say that “recent negative movements highlight that this market remains fragile and growth drivers are scarce.”
What Does This Mean For First Home Buyers?
When it comes to market competition, there are always winners and losers. In this case, existing homeowner losses are first home buyer gains. A combination of low interest rates and falling property values has meant that 2018 has seen ideal conditions for those looking to break into the property market for the first time.
An underperforming property market has also reduced the upward pressure on prices created by property investors seen in the Melbourne and Sydney markets. It turns out things are a lot easier when you’re not competing against cashed up baby boomers and property tycoons after all!
The extra good news is that these conditions also look like carrying on into 2019.
Playing The Long Game
“But wait!”, we hear you ask. “If Perth property conditions are so awful in Perth, why would I want to sink all of my money into buying a house and land package there?”
That’s an excellent question, and the short answer is because things won’t be this bad forever. According propertyreport.com.au “the good news is that our housing markets won’t crash...there should be some “upside” from 2021 as high net overseas migration inflows are likely to be sustained...and economic conditions begin to strengthen and supply fall back below underlying demand.”
What’s the upshot of all of this info? Well, if you take advantage of Perth’s post mining boom property slump to get into the market now, then chances are you’ll be ideally placed to benefit when economic conditions improve in the future.
At First Home Buyers Direct, we can help you make this happen. Get in touch with us today to find out more...
Posted by First Home Buyer Direct on 13 December 2018 | 0 comments
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