Perth is still ahead of the market with no end in sight

The housing market downturn has slowed down and home prices have rebounded in February due to limited supply and sustained buyer demand.

Perth's housing market has remained relatively affordable and has experienced a slight increase in prices in January and February, with potential buyer demand at a record high.

While some cities saw price drops, Adelaide, Sydney, and Melbourne experienced the biggest increases.
The low inventory of available properties for sale has resulted in increased competition among buyers, supporting property values.

Despite the decline from peak prices, national home prices are still significantly above pre-pandemic levels. The current state of the housing market will be influenced by future interest rate trajectories and supply levels.

Revised national home prices saw a slight increase of 0.09% in January and a further 0.18% in February 2023, but it is still too early to say that the downturn has ended.

While interest rates have been the main driver of falling home prices, other factors are also at play.

Present sellers in the market are enjoying low competition with other vendors, as the limited availability of properties for sale is creating a floor for home prices and concentrating buyer demand.

The future of the current downturn will depend on the supply levels and trajectory of interest rates in the upcoming months.

Now the inflation rate has dropped this could be the catalysed for the RBA to halt another interest rate rise, which will relieve some pressure on borrowing capacities.

Additionally, the shortage in rental supply and the return of international migration will continue to drive positive demand.

Paulette Contessi

Licensee / Director

THE CONTESSI GROUP