What’s Happening in the Property Market Right Now?

 Welcome to Home Building Like a Boss, the podcast dedicated to helping first home buyers in Perth build their dream home with ease and excitement. I’m Jaimi, your host and go to building broker. Are you ready to feel empowered, in control and excited about your building journey? I’ll help guide you with expert advice, insider tips and tricks and real life stories to help you navigate the confusing world of home building.

Tune in as I take you on the journey to building your home like a boss. Hello, and welcome back to another episode of the podcast. I have had a bit of a break from recording. There’s been lots going on over the last couple of months. So I do apologize that there hasn’t been any new episodes, but we’re going to get back on it to our weekly episodes and give you a little update on what’s been happening behind the scenes with the company.

We’ve had lots of changes and lots of growth, which has been very exciting and also give you a little bit of a market.

So I guess, first off, yeah, it’s been a crazy couple of months behind the scenes, we personally, I mean, I moved house. So moving house is always crazy and challenging times. So that was. Good, but it’s so nice to be in my new place and we have expanded and grown the team, which if you follow us on Instagram, you would have seen all of our new team updates, which has been really exciting.

So I’ve spent lots of time with Jake and Mim, who are our two new building brokers. Lots of time training them and building the team and working on our clients and. Lots of bits and pieces that the podcast just fell off on the bottom of the to do list, but now slowly getting back into it now that they’re on their feet and getting their groove.

It’s been really good in the office. You know, it’s been me working on my own for the last couple of years and Maddie over the last 12 months. So it’s so nice and so much fun in the office now having Jake and Mim in. So yeah, it’s been really good and very exciting on the business front. And we’ve got so many new clients coming through, which has also been super exciting.

So we’ve just been working hard on supporting our clients and helping them find land and their builder, which finding the land at the moment has also been, that’s like a huge challenge across the industry at the moment, which I’ll dive into when we get into our updates on generally how the market has been doing, but lots of super exciting episodes coming for you over the next.

Next couple of weeks and like ongoing, but definitely lots of topics that have come up consistently on challenges and struggles and questions that our clients have been having going to turn quite a lot of them into episodes, get some more clients on and possibly get the team on for a podcast episode as well.

So I’m going to get into it now on our general market update of what’s been happening. So like I said before, at the moment across the grounds, land is probably one of the biggest challenges across the industry at the moment. So a lot of people are struggling that with the established market still, that still hasn’t really changed too much, but because the established market is so tough, a lot of people are turning towards building now as well, which is great.

And the struggle is and the challenge is across the board at the moment is developers and estates can’t keep up with how the requirements that are needed for blocks. So essentially the supply and the demand, which I would have gone over in previous episodes, the supply and the demand. So it works very similar to.

Building and same as the established market, when we look at it as the land market, demand is higher than what the supply is. And the developers can’t keep up with the production of developing new estates and getting blocks quick enough on where the demand is. So essentially then that’s causing a supply and demand issue, which is then driving up prices.

There’s less blocks coming on the market. The releases with, um, blocks and estates and land agents rather than estates releasing 20 or 30 blocks, they’re releasing seven or eight every couple of weeks. So at seven and eight, there’s. You know, 50 to a hundred people waiting for those seven to eight blocks.

So it’s been challenging in a sense, but we’ve had quite a great result as a teams, we’ve really put our brains together and our minds together, and we’ve got great relationships with developers and land agents that we’ve been able to secure quite a lot of blocks for our clients, which has been really amazing and essentially that takes up quite a lot of our time at the moment.

With finding blocks of land for our clients. So, you know, the podcast just fell off the bottom of the list, but now back recording episodes again, which will be really good. We finding land is, you know, that challenging, challenging part at the moment. I know we had a client who got a block in Alkimos. And that was by expression of interest, which is released at a certain time.

You have to fill out a form as, as the client and that form gets timestamped. And wherever you get timestamped to say, you know, what block that you might get. And our clients did it. I think it was like bang on the dot submitted at like 10 Oh one when it got released at 10 and they were. I can’t remember how far in the line, they weren’t right at the start of the line, but they weren’t at the end of the line and they got secured on a block and the land agent had said there was a hundred applicants that submitted for, through that form to secure a block.

So it is pretty crazy out there. There’s all with that supply and demand. But, you know, I celebrate the team. We’ve got quite a really good result over the last six weeks. We’ve secured about 12 blocks, which is about two a week. I know that doesn’t sound like a lot. In this market, that is a lot. And, you know, that’s one of the benefits of having a building broker helping you through that.

Finding land at the moment is 90 percent of our work. And if, you know, you’re not available because you’re at work or you’re doing things for the release or The times you’ve gotta be on it when the land gets released. Otherwise they’re gone. Like estates and blocks are selling out within 10 minutes, half an hour.

So you’ve gotta be on it and you’ve gotta be ready to buy and make a decision. So it always comes down to that effective but concise decision making. Like you don’t have time to sit on it and ponder and put a hold on it anymore. You’ve gotta make that effective but efficient decision making if you’ve got a block in this market.

You’ve got to run with it, obviously in the area, in the size, in the budget, all those things come into play. And especially at the moment, which I’m going to do another episode on one of our other clients who just secured a block on how much the blocks like each release is getting more expensive because the demand is so crazy and the supply is so little.

The prices on blocks are going up. So not only is it build prices moving every month, land prices are moving every week. So, and that comes back to time as money, which circle back to one of my previous episodes where I’m going over time as money that is happening. And that is so important now more than ever on how you’re waiting or different releases, different blocks, different builders, waiting a couple of months, waiting different releases that is adding more and more.

I’m going to be talking about the first time guarantee scheme. And it’s a different scheme because it’s a more money because you’re waiting more time. So there’s lots of variables and factors that are happening at the moment across the market. And you know, one of the other challenges that I would say is the first time guarantee scheme with the 600, 000 cap.

It depends on what a state and how much you spend on your block of land, but 600 K for house and land package at the moment. is not actually a lot and that all comes down to the median house price. You know, if we look at the median house price for a three bedroom is 580 and the median house price for a four bedroom, these are all off Rewa, is 710, 000.

So, You know, those first home guarantee scheme under the 600 cap, you’ve really got to pick a cheaper location. And you’re looking at more sort of a three by two to work within that budget, which is restricting quite a lot of clients and the expectations and what they’re wanting to get in the market, all about getting your foot in the door to spend time in the market.

To then be eligible to get your property in five, 10, however many years it is later. 600 K is very different from a couple of years ago. And I think it’s all about adjusting to that new norm and expectations and reality about how much land costs and how much building costs and how quickly everything is continuing to move, which is continuing to go up.

And it just goes to show like how much. Even in the last 12 months, things have changed. You know, at the moment off Rewa, the number of houses, units and land sold in the last week was 3, 251. And if we look at that the same week as last year, it was 5, 051. So that is a huge difference. And that’s between houses, units and land.

That is a huge shift in stock levels across all three of those. And the median house is selling in an average of eight days at the moment on the market. So houses and establish are not on the market for long, you know, I, and this goes back, I sold my house in January and there was 80 people that came through, there were offers left, right, and center.

There is, people are trying, there’s a lot of people wanting those prices and there is a lot of people wanting houses. And needing houses, people moving to Perth, people getting out of rentals, people moving out of their homes, all those things are driving the supply and the demand is so low. So, you know, you’re competing with 50 to 80 and it’s essentially a seller’s market.

So it’s very, very. Very competitive and that, you know, hasn’t changed and that’s gotten probably even more competitive, um, than it was 12 months ago. So this kind of gives you a little, you know, recap and just a little update on where we’re at, where I’ve been, what I’ve been doing, which, yeah, been spending lots of time with the team, training, looking after clients, which has been really fun and really nice.

So it’s been, yeah, really, really good. Been looking for land, lots of updates. So yeah, been looking for, you know, lots of land. We’ve been doing lots of sketch and cost requests coming through and supporting them and supporting clients. And it just kind of gives you a little bit of an overview on where the market’s at and what’s happening, but we’ll have lots of different topics and things come through, you know, I’m going to chat about different prices, um, blocks, availability, have some special guests on the show.

And we’ll be back each week with some more episodes. So thank you for listening and I’ll talk to you next week.

Thank you so much for tuning in to the home building like a boss podcast. I hope you enjoyed today’s episode and learned something new. Remember you’ve got this and I’ve got your back until next time. Stay inspired, stay informed, and stay confident on your building journey. I can’t wait to chat with you on the next episode.

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