SHORTAGE IN MARKET - SALES

As housing sales surge forward with high numbers selling in the last few months it is leaving some people frustrated to have missed out on numerous properties. Whether it is sales or rentals both markets in the Bunbury area are experiencing a shortage of supply to demand.

WHY MORE BUYERS AND WHAT TYPES OF BUYERS?

There are a few reasons as to why Bunbury has more buyers. Firstly, a percentage of the sales are happening with buyer’s sight unseen. Interstate buyers keen to move to the area but do not have the ability to move there until they have locked in a property. These purchasers generally complete all inspections and are happy to enter a contract with as little as a video walk through.

THE  NON-TRAVELLERS

There is a percentage of buyers that had saved up to do a year travelling however obviously now cannot go ahead – they are keen to put their equity into property whether it be as an investor or owner occupied.

THE INVESTORS

The lack of return on having your funds in a savings account and also a super fund it is more of a lucrative way to increase your return. On average a return on an investment should be around the 4% - 7% however if you had the same funds in a savings account you might be lucky to get around the 0.5% - 2%. Another reason we are seeing a surge of investors is that they are purchasing the property to rent to family due to the shortage in rentals. This is also a reflection on the low interest rates and increased rental market.

THE EVERYDAY BUYERS

These buyers are the ones that were always around – given that the market is now moving there are many people upsizing or downsizing.

THE BUILDERS

With a surge of government grants that were issued the building industry saw a huge surge in demand.

HOW HAS THIS INFLUX IN BUYERS EFFECTED THE PRICES IN BUNBURY?

Below are the comparisons of last year prices to this years prices. You can see most of Bunbury Region has had growth.

BUNBURY, WA, 6230

EAST BUNBURY, WA, 6230

SOUTH BUNBURY, WA, 6230

 CAREY PARK, WA, 6230

USHER, WA, 6230

WITHERS, WA, 6230

DALYELLUP, WA, 6230

EATON, WA, 6230

AUSTRALIND, WA, 6230

It is clear to see that the market is evolving, and you can see this in the changes shown in the above diagrams. However, the question that everyone is asking is will it last? Is this surge sustainable. Will there be a Covid related incident that slows the market again? Only time will tell.