can we expect a bounce in next 6 months in Perth

[eks883]

i know this question is subject to each individuals experience/interpretation of available data.

however, would really like to hear your own takes on what YOU think is in store for next 6 -12 months.

1. will there be a bounce in demand/prices now that spring is here? (i have never been in a position to sell before and this year will be my 1st and thinking how to time it)
2.how much further in % terms can we expect rents to fall further.

some of the things i am seeing recently in last 3-4 months:
1. house prices seem to come back to earth (no absurd rises each month)
2. sell time seems longer, there was a time late last year where almost 60% of properties i am interested are sold within few days sight unseen
3. more agents seem to be door knocking around my area

also, i keep hearing that there MIGHT be rate rises towards end of 2015 (but anything can happen til then) and with the US set to raise rates, i feel we are bound to follow sooner rather than later.

 

[boeman]

My guess is flat to moderate (3%) growth on housing.

Flat to perhaps even a slight correction on units/low rise apartments due to current oversupply.

Long term, cycle beings again mid 2016...

 

[eks883]

Long term, cycle beings again mid 2016...

when people say cycle begins.... are we talking around the 12 o clock as starting point?

 

[MTR]

It is totally dependent on the product, we are already seeing an oversupply in certain areas, the Perth market moved 2 years ago with developers jumping in, where did they build? what did they build??
However if you have a product which is in demand that is unique, then it will sell, this is what we are seeing today/now in the Perth market, in other words development sites are still hot, however in the main I think the buyers jumping in now are paying too much, buying in the wrong areas, inexperienced, and thinking the market will continue to rise or land banking.

 

[thatbum]

I previously locked in my guess - mini boom for the spring/summer - end of 2014/start of 2015.

 

[z611143]

Depends on rates. If they rise the FHOB ect will get scared away and a few more. Thise with big loans will feel the pinch and not look for much more.

but yeh what MTR said

Im predicting a 4th quarter rate rise in 2015. Sort of against the grain but my prediction.

 

[INVSTOR]

It most likely depends what suburb, price and quality of what you are selling from what I can see. Plenty of buyers but selective.

 

[MTR]

When there are plenty of buyers it then comes to a price point, in other words its a buyers again.

 

[Catalyst]

When there are plenty of buyers it then comes to a price point, in other words its a buyers again.

Good time to buy? Going to be harder to get tenants, based on some of the postings in SS.

What strategies have you folks used when acquiring IP's in this type of market?

 

[Singo]

Good time to buy? Going to be harder to get tenants, based on some of the postings in SS.

More houses in the market, the tenants have choices. Reducing the rent slightly is the trick.

 

[INVSTOR]

I sold my PPOR a few weeks ago. I had one offer after first home open and a second just over a week later. My property has only gone up about 25% in past few years so no crazy price rises here and suburb is still reasonable value IMO. I achieved more than $50,000 more than what most agents quoted I'd get. Even my first low offer was for more than what most agents appraised. I had about 7 agents through for appraisals. In the end set my own price. The agent I used charged about $5000 less commission than most agents. Good time to sell. I'm thinking of selling another tenanted IP soon to reduce new PPOR debt. It has a lease in place for another 6 months and tenants want to sign up for another year. May wait until closer to end of lease so FHB could also consider it.
My RE Agent mentioned it's currently very competitive to get a listing.