My Real Estate journey started right here in the Mandurah market, in 1991. After 30 years’ experience I finally feel qualified to offer an insight into the Mandurah Murray property market. I’ve seen booms and busts and worked through a wide range of selling conditions and I’d have to say there’s no doubt the current market is the strongest it has been since 2006. So, if you have been holding off selling waiting for the market to improve, it’s time to make hay while the sun is shining.
A shortage of available homes, units and land to choose from across all Mandurah and Murray suburbs and a strong increase in demand coupled with historical low interest rates is driving the market forward at a rate we haven’t seen for a long time. Initially the buyer pressure was on the lower end of the market under $350,000, however as stock started to become depleted and the months passed towards the end of 2020 that demand spread to the more expensive end of town. REIWA reports that in Halls Head since November 2020 there has been a 36% increase in the number of homes sold between $400,000 and $700,000 from the same period pre-Covid in 2019/20 and a 30% increase in the number of homes sold for over $1,000,000 in the same period. In Madora Bay the news just gets better with a 19.7% increase in the Median price of a home and an extra 50% more homes sold in Madora Bay in 2020. All this activity continues to put pressure on prices. REIWA reports a change in the median selling days in Perth and Mandurah from 50 days in June 2020 to just 23 days by the end of 2020.
How long this demand runs for is the big question. Certainly, the end of the COVID rules on Residential Tenancies in three weeks has the potential to drive the market further ahead as rents are reassessed after a yearlong freeze. Already in many suburbs the loan repayments to buy the property, including rates and taxes, are cheaper than the rent. Most pundits are predicting rents are set to increase which, for a tenant, will make home ownership a more viable proposition. Whatever happens on March 29 when COVID-19 regulations end will go a long way to determining where the market heads in the next six months.