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Reap the benefits from Perth’s perfect real estate storm

Greta Andrews-TaylorThe West Australian
To make the most of the sellers’ market, Ray White Whiteman & Associates Principal David Whiteman said to get as many buyers in the market involved as possible through marketing strategies.
Camera IconTo make the most of the sellers’ market, Ray White Whiteman & Associates Principal David Whiteman said to get as many buyers in the market involved as possible through marketing strategies. Credit: Photon-Photos/Getty Images/iStockphoto.

With low stock levels, low days on market and rising prices, now is a great time to make the most of Perth’s sellers’ market.

Ray White Whiteman & Associates Principal David Whiteman said this type of market happened naturally, before COVID-19 turbocharged the situation.

“The market is very much about supply and demand,” he said. “If you look at the REIWA numbers, I think the peak of supply was about March 2019 where I think we nearly had 17,000 homes for sale. Then as we went through June-September 2019 it dropped down to about 13,500 homes for sale,” he said.

“Before COVID-19 it was around 12,500 homes for sale but by December 2020 it came down to 9500 – from the peak of 17,000 to 9500, it’s almost half the number of properties for sale, so it’s a significant shift in favour of the seller as supply shortens.”

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Realmark Coastal Managing Director Sean Hughes said prior to COVID-19, there were four consecutive months where there was positive growth and when the pandemic hit, the wheels wobbled for a period of time before settling.

“I think that was a combination of Western Australia being due in its cycle – ready to cycle out of the doldrums that we’ve been in – along with economic factors,” he said.

“The mining industry was gearing up again, there’s extremely low interest rates and the rental market being quite tight and improving from where it was – that all sort of coupled with the dropping stock levels.”

Looking at where we are now, to make the most of the sellers’ market, Mr Whiteman said to get as many buyers in the market involved as possible through marketing strategies.

“Use a local agent and have a very good and strong appropriate marketing strategy, so pushing out towards all the dot-coms and getting a really good width in terms of customers and buyers knowing that your property is for sale,” he said.

“We’re seeing a lot of expressions of interest, offers and auctions – a lot of no price methods. What it tends to do is maximise the number of people that are looking at that property and in turn maximises the opportunity of the highest possible price for the seller.”

Mr Whiteman advised buyers to take advantage of the current status of the market and buy now, as he predicted prices would continue to rise.

“I think a lot of people are hell bent over picking when the right time is, and I think it’s just a case of making the move if it’s right for your family,” he said.

“If it’s the right decision just get into it, don’t be too concerned about trying to pick the peak or top of the market.”

Mr Hughes said while it was appealing to most sellers to get a deal off-market, it could be worth doing the touch-ups, staging your home and decluttering your furniture to put it on market to get the best result.

“My advice for sellers at the moment is to not take the easy way out,” he said. “There is a pot of gold at the end of the rainbow and that requires a home to be presented properly and put it on the market so all buyers get the chance to see it.

“In order to get that pot of gold they need to go to market, in my opinion, because certainly selling it off-market can leave money on the table.”

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