In a buyer’s market, a home renovation or expansion is usually a better choice, especially in Perth. We know what you are thinking. “Why renovate when it’s a buyer’s market? Doesn’t that make it easier for me to get the home I want at a great price?”
The answer: “Yes.” But remember, you also have to be able to sell your old house. In a buyer’s market, that is difficult. Not only do you have to try and get a decent price for your house, you have to be able to sell it in a reasonable timeframe.
By the Numbers
At the end of January, the Australian Property Institute conducted a forum of industry experts. At that forum, Hayden Groves, President of the Real Estate Institute of Western Australia (REIWA), noted that the number of properties sold in 2015 was only half the number of those sold in 2005.
Approximately 23,000 houses, 5,000 units and 7,000 blocks of land were sold in 2015 for a total of 35,000. In 2005, a total of 75,000 properties were sold. But the most disturbing number was that there are currently 15,000 properties listed for sale in Perth. This may not seem like a lot, but for every house that sells, there are 24 on the market at any given time.
Why This is Important
If you want to sell your house and “buy up,” you will have a great selection of properties. You will be able to get the seller to “go down” on price a little bit to sell the home. Unfortunately, that is exactly what you will have to do on the other end, as a seller. Your home will be on the market longer and you will have to sell it for a lower price.
The market is moving slower; this will make your process of buying, selling and moving even longer and more arduous than it already will be.