Excluding land listings, there are less than 4,000 dwellings available on the market – three times less than just five years ago.
Adding to this, the rental vacancy rate is at a historic low of 0.7%, with just 1,708 houses and units available to rent.
The combination of low listing volume, strong demand and the tight rental market may mean those looking to buy subject to the sale of another property are having their offers discounted by sellers or are failing to bring an offer to the table entirely.
“It’s extremely competitive out there. So far this month listings are on the market for an average of just eight days and in many cases, houses are being sold after the first open,” said Realmark managing director John Percudani.
“While this demand is pushing prices up, it's also creating a selling timeframe that is eliminating potentially attractive offers from being presented.
“The homeowner looking to take advantage of the increased value of their property and upsize or relocate to an aspirational area is likely to have an elevated capacity to deliver a premium price to a seller, and could be missing out.”
Mr Percudani strongly promotes sales strategies such as a Set Date Sale or auction to give potential buyers a reasonable amount of time to take action, and give sellers the maximum and optimal range of offers to select from.
He also advises potential buyers to be well prepared to allow them to compete with non-subject-to-sale offers.
“Have your current property ready to be listed and be confident of its value and the sale period having established a strong relationship with a reputable selling agent,” he said.
“Consider a longer settlement period to allow the transaction to take place. Time and preparedness are the buyer's best friend in this situation.”
Short-term finance options can also help with this process.
“Specialized short-term financial solutions allow for financing the acquisition of a second property while affording the opportunity to sell the current one, even if a mortgage is already in place,” said Capita Finance general manager, Brad Driffill.
“Essentially, it serves as a financial bridge, enabling homeowners to navigate the transition between property purchases.”
Mr Driffill urged prospective borrowers to carefully evaluate factors such as interest expenses and terms before committing to these loan types.
With demand for housing in Perth and WA expected to remain high for the foreseeable future, industry leaders including Mr Percudani are encouraging a strong understanding of the challenges of mobility to ensure the best outcome for buyers and sellers.
In a market where sales are almost assured, there is an advantage in a seller ensuring their property is on the market for an adequate timeframe to attract all potential buyers and allow for a smart sale to be achieved.
To chat with a Realmark agent in your area, contact 9328 0999.
For advice on financial solutions, contact Capita Finance on 6323 9200 or visit capitafinance.com.au.