Perth home buyers warned to stay prudent amidst FOMO frenzy gripping the market

Perth’s home values have seen the largest increase across all capital cities. Buyers agents warn against investing in lower grade property amidst market frenzy. Apartments are not ideal for investors.

Perth’s property market has seen a confluence of circumstances exert upward pressure on prices, including, but not limited to, population growth, a record low of listings, and high construction costs.

CoreLogic‘s Daily Home Value Index shows Perth in the lead, achieving a 14.6% year-on-year change.

Perth’s weekly asking prices

Unsurprisingly, the competition to snap up a property is fierce, and, according to Resolve Property Solutions buyers agent, Peter Gavalas, compelling desperate buyers to settle for low-quality properties that they may end up regretting.

“If they ever want to sell their home when the market is declining or even just growing moderately, they’ll struggle to find a buyer, which means they’ll probably have to take a big haircut on the price,” said Gavalas.

Peter Gavalas. Image: Supplied.

Property Powerhouse CEO, Garth Davis, agreed that once a market of equilibrium is reached, where there are an equal number of buyers and sellers, the lower grade properties will be the most difficult to sell.

Perth’s FOMO frenzy

“The bottom line is that, right now, the Perth property market doesn’t have enough supply to cater to all the demand,” said Gavalas.

“So buyers are reacting the same way they do in any boom – they’re compromising on quality by settling for less desirable homes, such as ones with structural problems, or less desirable locations, such as on noisy main roads, because they fear they’ll never enter the market any other way.

“We’re also seeing another phenomenon that plays out in booms, which is that these C grade properties, which are really hard to sell during normal markets, are currently finding

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