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A Case Study of the State of the Real Estate Market in Perth’s Western Suburbs, February 2010

by 24. February 2010 15:48

I listed a property in the western suburbs of  Perth, Western Australia in December 2009. The property was priced in the $1 million to $1.5 million range. 

Though there was a high degree of interest during the first two weeks that the property was on the market, with three offers…the best was slightly under the asking price, which the owner subsequently accepted.

Unfortunately, that sale fell over due to finance. 

And so, the property came on the market a second time… 

This time, in early January 2010 an offer was received within days – and for the asking price! Not surprisingly, the owner also accepted this offer. 

It too fell over, this time due to unforeseen circumstances. 

Earlier this month, this property came on to the market again. As occurred previously, there was interest in the property. Only this time, the owner received THREE OFFERS, all over the previous offers, resulting in the SALE of the property for $30,000 OVER THE ASKING PRICE. 

In the space of two months, the one property had come on to the market 3 times, for three different results. 

Significantly, the amount that people were willing to pay for the property increased each time. 

Does this mean we are well and truly out of the doldrums? 

Well, it depends. 

If you’re property is perceived by the market to be overpriced, it will generally sit there, for quite some time (not unlike a year ago, when the market was at its worst). 

If however, the market believe your property to be presented well and priced fairly (according to recent sales), there will almost certainly be some interest… 

Which really means the market in the western suburbs is acting like a “normal” market… 

But with lots of upside!

Jamie Harrington

Director

Altus Real Estate 

 

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This is the BLOG of Altus Real Estate; we are located in Swanbourne, Perth, Western Australia.