Mortgage brokers in the Rockingham area are taking the news that the property market levelled out in September with a grain of salt. We have seen some economists saying that the market is going to flatten more and that the trend towards capital growth is “no longer accelerating,” but we see it as a temporary situation. Perth has been relatively flat for a year now but we have still seen plenty of activity in the Rockingham area, especially Baldivis.
Property prices tend to rise over time. They have peaks and valleys but the overall, long term trend is towards rising prices. If you own a home for twenty years and keep it maintained, you will almost always make money when you sell it. Property investors make a living by knowing that they are going to sell a rental property for more than they payed for it.
By the Numbers
So, what do the numbers say? The combined values of real estate in the capital cities rose 0.1% in September. The worst performer was Darwin, where values decreased by 1.0%. Adelaide had the highest growth, at 0.9%. Perth real estate rose by 0.4%.
It wasn’t all gloomy news for property owners as prices for the the September quarter rose 2.9%. Perth, however, saw a decline of 0.6% for the quarter.
Recent drops in capital growth have affected the 12-month trend, which was at 11.5% in April and is now at 9.3% as of 30 September. Perth real estate has been nearly level for a year, rising only 3.2% over the past twelve months.
What it Means to You
Property prices are cyclical but always tend towards long term capital gains. The current lull is temporary. Combined with record low interest rates, it presents an opportunity for first home buyers and small investors to enter the market before prices begin their inevitable upward march.
Call (08) 9527 1800 to learn more.