In 2022 we saw the introduction of interest rate hikes and even with eight interest rate hikes in 2022 Perth's real estate market still rose 2.86% with the median house price increasing from $525,000 to $540,000. So why is this and what does it mean for Perth real estate in 2023? When you take into consideration WA's booming economy, low unemployment figures, continued population growth, low supply and high demand for housing and an average median house price that's approximately $400k-$500k less than Sydney and Melbourne it's not rocket science to predict we have a very robust and encouraging real estate future in front of us. In fact Perth still remains the most affordable capital city by median house price, and while prices have risen in the past two years, in many areas they are still below the previous peak in 2014/15. REIWA predicts the next 12 months is likely to show a moderate growth of between 2-5 % and based on current market expectations, interest rates are anticipated to have minimal impact on the WA market, in contrast to other states. With all this in mind aren't you glad you live in WA in 2023? Provincial Real Estate 'the home of new beginnings' insights & news What is the real estate market going to look like in 2024? The trend is growing more and more momentum for a new demographic of buyers entering the hills and foothills. What we first thought was maybe a honeymoon period after Covid, of new buyers looking for an alternative to the burbs and city living, is now proving to be a much more permanent pattern. Since our borders reopened in Perth after Covid, the landscape of our buyers has completely changed. To give you somewhat of an idea, prior to Covid times, the majority of our buyers would be locals upsizing and downsizing and choosing to stay within the area. Buyers from outside the area back then would have been about 20-30% of the entire buyer pool, now that has completely flipped! We would approximate that about 70% of our buyers are now from the Perth metropolitan flats, over East or overseas, making demand for our green zone real estate grow stronger and stronger, with some astonishing sales results. Overall Perth is showing continued strength compared to the rest of the country. According to PropTrack, property prices in the WA city are set to increase between 8-11%, following growth of 18.9% over the past year — the largest increase in the country. Perth house prices rose $52,000, or 6.6%, over the June quarter to a record high of $852,240 according to Domain. That was an increase of 815% since 1990 when a house set you back $96,000. The times are a changing and so is Perth, as we speak we are in the real estate hot seat with hungry buyers locally, nationally and internationally waiting to pounce. For the latest property statistics for WA visit reiwa.com.au Kind regards, B.Ciocca Ben Ciocca Principal/Licensee Provincial Real Estate The Hills Honeymoon period continues
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