Those who believe they can predict what will happen in the real estate market for 2016 may find that the outcome may not match the predictions they went in with at the start of the year. Ongoing uncertainty and volatility in Chinese markets is having global ramifications with this year being earmarked as one of the most tumultuous starts in economic history.
Stock market volatility directly impacts everything in the broader economy from property prices, to consumer sentiment, the jobs market and more, and this year looks to be a particularly ‘interesting’ one.
Property consultant, Richard Clucas, believes despite the current situation in China and globally to a larger extent, we can expect to see house prices in the Perth market stabilise somewhat. However he said this may change depending on investors’ likelihood of offloading vacant properties which may cause the local property market to dip a little further. He expects growth for 2016 to come from young couples, singles and professionals looking to enter the market or those wanting to capitalise on the softer market and move up in terms of price bracket.
He said flattened market conditions can be expected after what he described as an amazing run for our resource rich state.
“Although there still is a degree of uncertainty about the extent of the impact of the resources slow down, people still need a roof over their head and a place to call home.” He said as the construction phase of the larger mining projects winds up, we may see some movement out of WA which also impacts demand and the supply of stock to the market which in turn will affect housing prices in Perth.
Mr Clucas said although the stock market had been rocked by global uncertainty about Chinese markets and other external factors early in the New Year, the start to the year in property had been a fairly strong one so far. “There is certainly an increase in buyer activity,” he said. “Buyers who are currently renting are seeing opportunities and it’s a great time to educate and discuss different options with home owners.
“Opportunity exists when you sell in a soft market and buy in a soft market, with potentially a better return in the higher price brackets.” He said those in this situation looking to upgrade are in a good position to buy. Interest rates remain, he said, one of the major factors homeowners take into consideration when buying a home. It’s also having a positive impact on buyer sentiment so far this year with predictions are that rates will stay on hold for most of 2016. Mr Clucas said sellers were becoming more realistic when pricing their properties and should seek advice from a reputable agent to ensure their properties were priced correctly.
“Agents need to price the property correctly and realistically and sellers need to present homes to the highest possible standard. “You need an agent with a proven selling strategy and lots of energy and who is prepared to leave no stone unturned in securing the best possible deal for their client,” he said.
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