As seen in The West Australian
2024 was characterised by strong demand for property, strong price growth and homes selling extremely quickly.
If you know someone who sold a property last year, the chances are it sold at the first home open, with multiple offers received, and for well over the asking price.
However, the market has changed.
The rate of population growth is slowing. While there is still strong demand for property, it is not at the levels it was a year ago and the frenzied conditions seen in 2024 have softened.
We also saw a surge in new listings late last year and properties have continued to come to the market in fairly consistent numbers since then. As a result, buyers have had more choice and have been able to take more time in their purchasing decisions.
REIWA members tell us buyers are also being more prudent in their spending. A year ago, FOMO saw them seek to borrow as much as they could in order to secure a home. Now buyers are looking at what they can comfortably afford to repay.
What does this mean for sellers?
If you are selling now, you are likely to have a different experience to those who sold last year. You should not expect your home to sell at the first home open or to achieve the sensational price outcomes seen for most of 2024.
While that may still occur in some cases, in general we are seeing properties take longer to sell, price growth slow and, in some suburbs, sellers are having to discount their original asking price to achieve a sale.
This means pricing and presentation are more important than ever when selling. The price your neighbour achieved 12 months ago is no longer a realistic benchmark for your property, you need to meet current conditions. With buyers seeking value, and able to spend more time looking for a home, properties that are priced too high are likely to be overlooked and sit on the market longer, which can lead to discounting later on.
You also need to present your home to attract a buyer. REIWA members report well-presented homes are seeing good numbers at home opens and selling in reasonable timeframes. Other properties are seeing less interest and taking longer to sell.
If you are thinking of selling, it is essential to get the advice of a local REIWA agent. They can tell you what is happening in your market and to present and price your home to attract buyers. Suburb profiles on www.reiwa.com also offer valuable insights into median prices, recent growth trends and time on market.
Suzanne Brown
REIWA President
