House prices and rents to grow further in 2023

WA’s house prices will achieve moderate price growth over 2023, with the median potentially reaching $580,000 by the end of the year, according to Reiwa’s 2023 property market quarterly update.

Rents are also expected to rise further.

“After 0.9 per cent growth in the first quarter of the year, the median house price rose nearly 2 per cent in the June and September quarters to reach $570,000, showing total growth of 4.6 per cent since the end of 2022,” Reiwa CEO Cath Hart said.

“Resilience was the theme earlier this year, but records are the key word now.

“In the last quarter we’ve seen new records for house prices, the median time to sell and a new record low in the number of listings advertised for sale.

“Earlier this year I said the big drivers of the WA market over 2023 would be the three as – availability, appetite and affordability.

“With WA’s population growing 2.8 per cent in the year to march, the most growth in the country, the appetite for WA property is strong and likely to remain this way for some time. 

“Availability of stock meanwhile remains low. While the number of homes coming to the market is about 6.3 per cent lower than the same time last year, the number of sales is 16.4 per cent higher, reflecting the strong demand.

“Houses are selling like hotcakes and the number advertised on www.Reiwa.Com hit a 30-year low of 4,931 at the end of September, well below the 12,000 that is considered a balanced market.”

“When it comes to affordability, even though prices are rising, WA remains one of the most affordable places to buy in the country. Our house prices, higher than average incomes and lower than average mortgages mean it is easier for people to buy and service a mortgage here, despite the significant rise in interest rates since may last year.

“The property market is underpinned by strong fundamentals – our economy is currently the strongest in the nation, we have low unemployment and record population growth. This supports further price growth.”

The unit market did not perform as well as the house market, despite strong demand for dwellings. The median price has decreased 1.2 per cent from the end of last year to $400,000 at the end of September.

More Details : https://reiwa.com.au/news/house-prices-and-rents-to-grow-further-in-2023---reiwa-market-forecast-update/