If you're considering building your dream home in Western Australia within the next year or so, it's understandable to be concerned about the uncertain housing market.
However, there are many reasons why now is the time to act.
Will House Prices Drop?
Housing prices are affected by many factors such as supply and demand, economic conditions, government policies, and more.
Despite news of falling property prices in the eastern states, this doesn't reflect what's happening in Western Australia. Perth is still one of the most affordable capital cities in Australia to buy a home, and it has strong economic factors, including low unemployment. Perth is an undersupplied market for both house sales and rentals, which further supports current property prices. This trend is expected to continue, with WA experiencing a lot of immigration from other states and countries, increasing demand.
Although interest rates continue to rise, people still have a lot of cash flow, including first-home buyers. However, traditional construction is still expensive and time-consuming. Many people can't afford to wait 2-3+ years to build a new home and prefer to pay for an existing home instead. This preference for existing homes will also keep prices high.
In addition, WA is experiencing a lot of immigration from other states and countries to both urban and regional areas, increasing demand. A lot of investors are buying property from the eastern states because it is the only place they can afford to get into the market. Therefore, the most likely scenario is that prices will be kept stable, with possibly some small growth.
Why Now Is the Time to Act in Western Australia?
After being hit hard by the pandemic-related disruptions, the industry is gradually seeing a return to normality. As a result, construction companies are facing fewer delays and higher availability of materials. Homeowners can enjoy the advantages of building their dream homes without worrying about the uncertainty surrounding supply chains and material availability.
It's important to start planning early to avoid drastic delays and be mindful of the current high construction costs and waiting periods. With Perth's affordable housing market and strong economic factors, building your dream home in Western Australia in the near future is a smart move!
Despite the uncertain housing market, building your dream home in Western Australia within the next year or so is a smart move as long as you have done your research and sign with a reputable builder. It's important to start planning early and be mindful of the current high construction costs and waiting periods. Therefore, if you're looking to build your dream home, now is the time to act.