Housing market recovery stops abruptly with new price drop due to labor market and financing issues
After a positive start to the year and many experts highlighting the upward trajectory of Perth, the capital of Atlanta collapsed and the value of homes dropped by 6.7% until March 2019.
CoreLogic's Hedonic Home Value Index for March 2019 indicates that the annual decline rate has increased, coinciding with weaker labor market conditions and lack of credit.
"Perth was coming back from a negative, but he was diving again. About 40% of the market is in decline, "said Brendan Kelly, director of Results Mentoring.
However, he does not see this period of decline last very long.
"I anticipate a return to neutral territory, I do not think Perth will dive much more. We will see a more balanced market. "
In addition, according to Nerida Conisbee, chief economist of REA Group, this decline could be of interest to real estate investors in Singapore, Malaysia and the United Kingdom. In January 2019, Brexit resulted in a 135% increase in research activities related to Perth in the United Kingdom. The rental application is also good.
"The fundamentals of real estate demand seem much more positive, especially population growth," Conisbee said in a press release.
Economic zones selling like hotcakes
Falling values ​​in Perth inspire the activity of the first home buyers, who made up the majority of sales transactions in February 2019.
"Almost half of the transactions were less than $ 500,000 in February, a trend we have seen for three months. Looking more closely, 32% of last month's sales were between $ 350,000 and $ 500,000, and 17%, below $ 349,000, "says Damian Collins, president of the Institute of Technology. 39, real estate in the state of Washington.
"Traditionally, when there is a greater proportion of activities taking place under $ 500,000, it means that the first homebuyers are on the move."
The suburbs that experienced sales increases during this period include Hamilton Hill, Tapping, Waikiki, Morley and Rockingham. These markets had median prices below the median of Perth.
That does not mean that the high-end market is at a standstill: more expensive suburbs such as Duncraig, Palmyra, Ocean Reef and Sorrento are among the top 10 suburbs sold in February 2019. Average sales were well below average. Perth average of 76 days.
SUBURB TO MONITOR
MOUNT HAWTHORN: Positivity returns in the suburbs of Perth
The suburb of Mount Hawthorn is slowly but surely seeking to overcome the negativity that has plagued it for many years.
For the first time in five years, Mount Hawthorn returned in the dark, recording a 0.8% increase in housing prices in the 12 months to February 2019, bringing the median at $ 878,966. Unit values ​​fell 8.8%, but rents rose about 2% year-to-date, up to December 2018. Rental yield units was also relatively strong at 4.6%.
Locals enjoy excellent public transport and proximity to Perth's central business district, located just 5 km north of the suburbs.
Location: The suburb is very close to Perth's central business district, making it a convenient place for many people
Growth: For the first time since 2014, the Hawthorn Mountain home market recorded positive growth
