For most people, whether we really think about it or not, the Christmas, Hanukkah and New Year holiday period is a time when there is more focus on our home, the homes of friends and family and our sense of place in general.
Whether we are religious or not, the festive season might see us return to or visit a family home, decorate and celebrate in our own homes or accept invitations to the homes of others. It might also be cause to give thought to the kind of home we would ideally like to have so we can welcome people over, prepare food, entertain, dine and relax. Is it time to move, upgrade, renovate or put in a pool?
Homes are more than just a roof over our heads, they also give us a sense of who we are, of belonging and can serve as an illustration of our personalities, success and aspirations as well as building long term wealth.
These are some of the reasons why home ownership is so important to many people and why it remains ’the great Australian dream’.
This time last year the median house price in metropolitan Perth reached an all time high of $473,000. Then the property decline began and was further side-swiped in September by the US sub-prime crisis triggering its negative global reaction with consumer sentiment. By September of this year the median had dipped to around $435,000 and indications are than a further decline will be experienced in the December quarter once the data comes through in January.
In other words, the dramatic boom of the last few years is clearly over and a softening of prices is being witnessed right across most suburbs and regions. Despite this the economic fundamentals in WA remain robust and population growth is still strong. It remains to be seen if the fallout from the global financial crisis increases unemployment.
The current conditions are ideal for many first home buyers, especially with interest rates dropping and the federal assistance from Canberra easing affordability even further. The remainder of the buyer’s market is pretty slow, but pent up demand may see the market start to return to a more normal pattern in the New Year.
The Christmas period is traditionally a quiet one for agents, although things tend to pick up in February. There are many more homes for sale to look at people have much more time to shop around and to negotiate on price. This means our agents, sales consultants and property managers will be working extra hard next year as they meet the challenges of a very different market.
REIWA wishes all our members and the community of Western Australia a very safe and happy Christmas holiday.
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