Mark Hutchings from First National Genesis joined Doug on Mornings to offer some relief to home buyers currently afraid of missing out.

Mark began by talking about the shift in the housing market that has taken place since he last spoke with Doug.

The Perth Average

“We continue to see listings come onto the market,” said Mark. “That’s been a pattern since about the first week of January. Every week it’s gone up a little bit.”

He said he has seen it accelerate over the past two months, as we now sit at 6,000 properties on the market. This is still below the Perth average of about 14,000 but sits at triple the amount it was at the start of the year.

“For people that are out there, buyers, they probably feel like there’s more options for them, which is great.”

Interest Rates

Mark brought focus to the rise in interest rates.

“We’ve had three interest rate rises, already this year. That means buyers have less money to spend.”

The budget announcements from the government also affect investors and the sorts of properties they would be interested in buying.

“Certainly globally as well,” added Mark, “There’s an on and off again war with Trump… inflation around the place.”

He mentioned supply is also low, while immigration is growing higher.

“That’s what’s sort of underpinning the prices and that’s why the prices have steadied the last few months. They haven’t necessarily dropped all that much, but they’re not increasing. They’ve probably just consolidated the last two or three months.”

The Market Today

Mark offered some advice for those watching the market to see if it will drop.

“If you’re looking to buy a house to live in, if you say something you love, buy it. Don’t try and overthink things. Don’t try and be too cute. Because if you see a property that you love, go for it. Because whether your house is worth $100,000 or $1,000,000, it’s still the same house over your head.”

He said that on paper, interest rates can change and fluctuate, but for those buying to live in the long term, it is worth committing to it.

“The minute you start being too cute and try and time it, say, wait three months or six months, you could go the opposite to what you think. People during COVID thought the market would crash.”

Average Days on the Market

Mark assured buyers that houses are sitting on the market longer than they were six months ago.

“Six months ago, 12 months ago, I was getting offers sight unseen.”

He said that houses are now sitting unsold for up to 9 days, which is more of an improvement.

“If some are 30 days, some must be three or four days to average it out. It might feel for sellers like things are hanging around a bit longer. Instead of selling in a week and a half, it’s taking two or three weeks to sell. But in reality, if you zoom out and take your breath and have a look at where we’re sitting historically, Pre-COVID, the Perth average was 42 days on market.”

Mark added that buyers have a little more freedom to think about a home purchase instead of feeling pressured to make an offer on the spot.

“They can also stand firm on their best offer. Take it or leave it.”

This is due to a significant shift in the market and the budget that the government has put in place.

“The government are still making tax laws, which put things in an uncertain space. But my feeling is, don’t make decisions based on the government. Make it for your lifestyle,” said Mark.

Rental Prices

Mark said to the renters, it is a better idea to buy instead of rent in the coming months, due to the lack of investors.

“I can see these new laws that affect the investors, if there’s less investment properties out there, then there’s less rentals. So I can see rental prices going up in the future.”

“If you’re renting and you’re looking to buy a place, I think that’s a great idea. Sooner rather than later would help you.”

He added there is more stock coming to the market, which will provide a silver lining for first home buyers.

“But if anything, like there’s that opportunity now for renters to find their first home. And I think that’s a great thing.”

Check out the full chat with Mark Hutchings below.