Resolution evolution: why it’s time to tick off your New Year property goals now!
A fresh new year and a list of optimistic resolutions go hand in hand.
Each January overarching statements like “I will take up yoga, I will only drink two glasses of wine in one sitting, I will stop renting and buy a home” are enthusiastically made and shared.
We gaze upon the year ahead with renewed hope and envision what the best version of what it will look like.
Yet when it comes to looking at the future of the WA property market, the year ahead of us has not been met with the same level of positivity.
Industry heavy hitters have weighed in, sharing with the local media their preliminary predictions for what they see as a tumultuous 2017 for the WA housing market.
One property industry professional believes an oversupply of homes and intense competition among sellers will drive the median home price down by up to 5%. They predict prices won’t begin to recover until 2018.
Another shared an equally grim outlook on prices, stating the average Perth homes’ worth could be further hindered with the $5000 increase of the first home owner grant.
Despite this pessimistic outlook, Nicheliving Director Ronnie Elhaj believes the $15,000 first grant goes hand in hand with boosting the local economy and improving sentiment.
The property doyen of Perth’s largest developer in the affordable house and land sector predicts a thriving year for the first home owner division.
Ronnie says 2017 is set to be a year of incremental recovery on a month by month basis, with the grant increase giving the market a much-needed push in the right direction.
Potential first home owners jumped for joy in their rented abodes when the announcement was made, and just in time to list home ownership in their resolutions alongside wining and dining less.
The construction industry breathed a sigh of relief, with the grant expected to create up to 3000 jobs for an industry where jobs were at a disheartening low.
This consequential decrease in unemployment rates is a natural positive as is the flow through effect of contributing funds back into the local economy, as well as the financial sector.
WA’s economy is amid a transitional phase, yet despite the current economic climate, construction sits second, behind mining, in holding percentage shares of the WA economy.
Ronnie says the grant could see the quantity of new residential builds potentially double the 650 figure predicted by the State Government, further boosting the construction industry numbers.
Some industry professionals have concerns over the increased grant, stating established homes will suffer, leading to an oversupply on the market.
They believe the same incentive should be offered to the established home market.
According to Ronnie, this incentive would not produce the same positive economic and employment benefits as its first home counterpart.
Instead it would drive artificial short-term demands on the real estate market which he says will already be positively influenced by the current grant stimulus, producing a fruitful market in 2018 and beyond. For potential buyers with their eye on an established home, now is a better time than any on making the purchase.
With a firm focus on the sizable first home owner grant, attention and competition within the established home market isn’t as fierce, providing favourable conditions for the savvy second or investment buyer.
And sharing a likeness with our sweeping New Year resolutions, a property market turnaround takes time and patience.
However starting 2017 with a strong foundation- in the form of the increased grant- is a more than ideal way to begin.
Even the established market is kicking early goals and off to a better start than initially predicted.
REIWA says median home prices have been on the rise across the past two months which implies the trade-up sector of the market is on the mend.
So whether your aim is to eat more greens or to finally take the first home ownership leap, now is the time to make your resolutions a reality so you can reap the benefits sooner than later.