The first week of 2023 saw over 7,000 properties listed for sale which, at the time, was viewed as a critically low number.
One week into 2024, and the volume of listings is half of that, with just 3,633 properties for sale with 826 of those being land.
Realmark managing director John Percudani told The West Real Estate these factors will see the Perth property market remain highly competitive in 2024 – but we could see a cooling off later in the year.
“Perth has had rapid price growth in 2023 off a relatively low-price base by comparison to other major centres,” he said.
“This has been in the order of 12% for the calendar year, which is not sustainable long term, but will continue into 2024 due to intense demand and low listing stock levels.
“However, affordability is now reaching a challenging ratio, which interest rate growth and the cost of living will further impact.
“As a consequence, price growth is likely to moderate, especially in the second half of 2024.”
Mr Percudani said buyer active will remain high due to the common theme of population growth and migration built on a strong economy, with interest rates the only negating factor.
“Although buyer demand remains elevated, interest rates are already having a notable impact on buying capacity,” he said.
“We anticipate the RBA will be highly focussed on inflation and interest rate policy will remain acute in 2024, which will have an increasing impact on demand, buyer competition and price growth in WA.
“This impact will vary across the various sectors in the market , metro and regional.”
Mr Percudani, who founded Realmark in Perth 35 years ago, also highlighted the importance of the first home buyer market to a healthy overall property market in WA.
“A significant amount of first homebuyer demand has been brought forward post COVID through government intervention,’ he said.
“One trend we have noted recently is increased buyer activity in the apartment sector by first home buyers, probably due to the lack of supply in standalone housing options at this time.
“We expect that the first home buyer sector will continue to recalibrate in 2024, especially in response to supply and affordability adjustments.”
To compare John Percudani’s property predictions for 2024 with other real estate experts, including REIWA CEO Cath Hart, see the Saturday 6 January edition of The West Australian.
To speak to a residential property expert in your area, contact Realmark today on 9328 0999.