All of us who are employed as mortgage brokers at Smartline Rockingham have a habit of constantly keeping our ears to the ground. We always like to make sure we are up to date on all relevant information about homes, home prices and interest rates because those are the things that affect our clients the most.

As the prices have flattened out, we have been hearing of a lot of homes in Rockingham, Baldivis and Kwinana going for less than their asking price. This often happens when the market is a “buyer’s market.” According to recent figures released by CoreLogic, the average home in the Perth market is selling for 7% less than the original asking price.

Those who are buying units are getting an even better deal: 7.8% less than the asking price. This is the biggest average discount since 2011.

So, why is this happening? There are currently 20% more homes on the market than there were at this time last year. In fact, there are more homes for sale in Perth than in Sydney. The high amount of properties for sale is allowing prospective buyers to find more properties that they like. This allows them an emotional detachment which makes negotiation more effective for them.

There is one caveat, though: May numbers were up. Combined with the recent rate drop, many people, including us, feel that the market has finally “bottomed out” and is on its way up.

Still, some housing prices are going below $300,000 and investors are having good luck negotiating prices on properties that need renovations.

What it Means for Your Home Loan

This news is more justification of what we have been saying for a while: take advantage of this market while prices are as low as they will be and interest rates are at record lows. There were times in the past when prices were less but we don’t see it ever happening again.

Get the Help of Professional Mortgage Brokers

Call Smartline Rockingham today and get pre-approved for a home loan. Once you know how much you have to work with, you can go into negotiations knowing exactly what you can afford to spend.

Call us today: (08) 9527 1800.