HAVE WE REACHED IT?

There is a funny thing about bottoms…. They are notoriously difficult to recognise.

I am talking, of course, about the cycles of the real estate market and the difficulty in knowing precisely when the market has bottomed out. Generally, it’s only when the market reaches a solid growth phase that you can look back at the data and recognise where the bottom has occurred.

Now, I am not suggesting we have reached the bottom of the current cycle, but I can say that at Caporn Young we’re seeing some very encouraging signs.

According to recent figures released by REIWA, the number of properties listed for sale in Perth has dropped to around the 15,500 mark. This is significant given that for most of the year the level has been above 17,000 peaking at 18,200 during April.

It’s also reassuring to hear that talk about short term interest rises seems to be fading with some commentators even predicting the RBA may reduce official interest rates.

And locally, we’re seeing a greater number of under offer and sold stickers across our core suburbs (many of them our own), evidence that correctly-priced property is definitely selling in reasonable time-frames.

Whether or not we have reached the bottom of the market or are close to it, buyers should be relatively confident about the future performance of their purchase. And, with spring arriving and current stock levels reducing, sellers who are willing to meet the market can hopefully expect improved competition amongst buyers and an increased likelihood of achieving a sale.