Perth property outlook 2020; what’s the market looking like this year?

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There’s an optimistic feeling around the Perth property market in 2020! The new year brings an overall positive expectation for the whole Western Australian industry.

It seems the worst of the market downturn has been and gone leaving behind a state that’s in a good position to be revived by relatively stable conditions over the next year.

Sales activity is likely to increase as momentum swings upwards backed by a few factors:
  • Rising consumer confidence levels
  • Improved housing affordability
  • Overall Australian economy recovery
 
More affordable property

As 2019 provided some of the most affordable Perth property in recent years thanks to rate cuts and home loan changes, 2020 looks ready to continue this affordability trend.

Consultancy Knight Frank released it’s 2020 Outlook Report predicting there may be further interest rate cuts from the Reserve Bank of Australia (RBA) making property more accessible.

“We expect the RBA will cut the cash rate two more times to 0.25 per cent and, if further fiscal stimulus is not forthcoming, launch quantitative easing,” the report said. (The West)

On top of this, REIWA President Damian Collins believes much of the rate cuts and reforms from 2019 were not felt last year but are likely to have an impact in 2020 instead.

“With the current low interest rates and population growth slowly but steadily improving, Perth’s median house price could improve over the next 12 months,” he said. (The West)
 
Good news for the rental market

The Real Estate Institute of Western Australia (REIWA) released their analysis of the future of the rental market and it looks like good news.

The analysis shows a strong likelihood that the upward trajectory from 2019 should continue through 2020 based on key driving factors:
  • Consistent demand
  • Population growth
  • Reduced supply
REIWA President Damian Collins said, “We are already seeing competition for good, quality stock which means we can expect this to pick up at the start of next year and continue to gain momentum later in 2020.” (REIWA)

With REIWA predicting a strong outlook for the rental market, investor interest is likely to increase as this is a great opportunity to take advantage of positive market conditions.

3 top tips for getting property in 2020
  • Get your finances in order, do some research, figure out your budget and tidy up any debt.
  • Have a look around and see where your best options lie. Take your time finding the right home for your situation.
  • Utilise expert advice from our leading property team to assist you throughout your journey.
 
Find out how owning your home is easier than you think!
 
What are your home goals this year?

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