Well here we are again, Christmas is only around the corner and another year is nearly over.

It has been an interesting and challenging year for the property market across the Western Suburbs and nowhere has been more interesting than Nedlands and Dalkeith with the new planning scheme LPS3 coming into effect in April this year. The changes have caused turmoil among residents and with the submission of many new development applications, we are now starting to see the washout.

We have seen the Perth market generally slip slowly lower throughout 2019, and the Reserve Bank has cut the cash rate aggressively in the second half of the year to record low levels. Unemployment continues to be high and the beast that the RBA and the government just cannot seem to tame. Trade wars, border walls, a shock Australian election result and plummeting interest rates, what a year!

So what does all of this mean for prices and the next 12 months?

Even with a large number of buyers, the need to price appropriately is more critical than ever. It remains the case that if homes are priced appropriately and marketed correctly, then they are generally under offer in good time.

With the greatest price declines occurring at the top end of the marketplace, it has presented an excellent opportunity for those looking to renovate to upgrade, with the gap between block value homes and finished homes the smallest it has been in many years.

Overpriced homes are still languishing on the market with many sitting there for six months or longer. In fact, there has been a large number of homes that have been marketed unsuccessfully this year and then withdrawn from the market. This is a costly exercise for the families involved both monetarily and emotionally.

More than ever, we are operating in a very educated and information-rich environment with all buyers and sellers having a plethora of cheap up to date information available to them. Most buyers are now brandishing a range of apps on their phones that give them the same quality of information that agents and valuers refer to. This means buyers are now making decisions about a home’s value from their phone, and if it doesn’t add up, they are just not coming to home opens.

We have found that generally, as we are the conduit to the market, we have had to become more and more resourceful in the way we are engaging with buyers. 3D walkthroughs, artificial intelligence and well researched social media campaigns are becoming the norm, and the days of only relying on the sign and nice brochure have quickly become old-school.

Soon we will be heading into the Summer selling season and buyers will continue to lament the lack of stock, a story that we have come to know only too well over the last three years. However, this high demand for property is not putting upward pressure on prices; in fact, we believe the low stock level and low-interest rates are the main drivers of prices staying stable. This situation could change very quickly if the number of homes available for sale increased.

So what’s in store for 2020?

The ‘big things’ that agents have their eyes on as we head into the next year is the economy, interest rates, and unemployment. Economists only get it right 50% of the time, but most bets are on the Reserve Bank continuing to move rates downwards throughout 2020, maybe even to zero

In its recent statement on the economic outlook for 2020, the RBA stated that housing investment continues to be subdued and it anticipates that a full recovery may still be some way off. This means that many families that have been waiting for the market to roar back into life before selling may be disappointed. It’s important to remember that the best time to make a move is when you are ready. Most families are concerned with the changeover cost, the meat in the middle. So as long as you are buying and selling in the same market, you can minimise the risks.

As always we are only a phone call away, so, please don’t hesitate to call us anytime if you have any questions.