Time to move on up. Now is the best time to renovate.
As a homeowner, I keep a close eye on the property market (as I’m sure you do too). Not that I have any intention of selling up right now, but you do want to be sure that if there’s an improvement in home sales generally you’re ready to go.
Lately, it’s been bleak. According to REIWA, by the end of 2017 median house prices were lower than in 2010, creating an overall lower sales volume - people will rather stick where they are than sell at a loss.
Even on the rental side of things, REIWA reports that vacancy rates have held at an average of 4-6% over the last 12 months, but median house and unit rental prices have been going steadily down since 2016. That old catchy Coles jingle would fit here.
So, Perth’s average property prices have not moved up for 8 years. They also haven’t gone down to a point where we believe we’re currently at the bottom of the property cycle. But on the positive side, interest rates are at their lowest point in 60 years.
That’s what makes now a great time to renovate. You’ll enjoy improved growth over the coming years, as well as beating the coming building boom price rises. As the inevitable upswing occurs, we’ll see prices creep up not just for homes, but for building costs (ie: tradies and supplies) too.
It’s worth noting that Perth house construction has been below the average for the past few years. The expectation is that when this turns around soon, we’ll have a shortage of tradespeople to do the work, so quotes will go up.
We’ve already seen material prices increase over the past 6-months, but current trade prices haven’t moved up... yet. Right now, builders are not flat out, so you’ll be getting a quick build time with good quality construction.
With work already beginning to increase and a lack of building tradies in WA (let’s put that down to the post-mining-boom east coast exodus), demand is set to snowball. Once it kicks off we’ll be waving goodbye to the prices of the past 3-4 years as they disappear like a Scarborough sunset.
If you want assurances that now is the time, look at the smart money in high value home areas like Dalkeith. These savvy folk are are all investing in upgrading their properties or building new to take advantage of lower costs and quality construction.
So, what are you waiting for? It’s time to move on up.