In case you have been away on an extended holiday to Antarctica and missed it all, Broome has broken the all-time annual record for rainfall. More than 1500mm of rain has fallen from a severe tropical low and three cyclones (Hilda, Joyce and Kelvin) which has left Broome and the Kimberley drenched. Here we are in the middle of our Summer Season after all of this rain, with the natural question on a lot of peoples mind “will the growth in Broome continue?"
Without a doubt the weather has significantly affected sales. We have seen a reduction in sales transactions from the beginning of this year for the same quarter last year. To give an idea on the current market affected by the weather we have had three properties go under offer and one property sold. This is compared to 14 properties under offer for the same period last year. Not surprising given many home open and buyer appointments had to be cancelled due to downpours and damage caused all of which resulted in reduced delays in property sales.
Many residents naturally have been focused tending to their own properties or increased work committments rather than having time to consider whether to buy or sell. So there is a domino effect along the way and it can be said that this unusual weather will affect sales in the short term. Market performance is ultimately determined by interest rates, the job market, and a buyer’s perception of the right time to buy. Timing is everything. Fortunately, rain, although inconvenient when buyer or selling, is a temporary thing and the monsoon season won’t last forever and if your home is ready for sale or you are a serious buyer, it is not all doom and gloom.
In case you missed REIWA’s announcement… the December quarter for Broome showed that it outperformed WA with a 4.4% increase in the median house price. This was much welcomed news for Broome and offered confidence to the local real estate market that we had in fact seen the bottom and things were changing.
We know this current quarter, Broome probably won't fair to well with its growth rate but we are still seeing improved enquiry and believe it is a great time to secure a property at a great price. Our Agency is seeing strong on-line interest. We have had forty new direct email enquiries into our office for 2018 so far registering interest in buying or renting property. This is in addition to our existing database and social media campaigns where we are also generating good enquiry.
So where does that leave you if you're considering buying, selling or investing? There are a whole range of strategic theories about when to get in and when to get out, but if you actually focus on the investment potential of the property in the long term, your interests are best served. If you find a property that checks out as a solid investment in a great location for a decent price, then external factors may not come into your choice. However, understanding the mechanics of the market will certainly help you to know how the market may affect your investment, immediately and in the longer term. Knowing what the capital growth potential of the property is, how easy it will be to maintain and tenant (if applicable) and that there are decent tax advantages to the investment will mean that for you any time will be a good time to buy property.
We don't have a crystal ball but we can help in your Real Estate journey and provide you with facts. One way to do that is to make sure to read our Broome Activity Report. This Report is designed to provide a snapshot of what is happening in the Broome region where we provide a detailed market update every quarter with actual sales evidence. You can register here for the latest edition.