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REIWA President Hayden Groves said conditions in the September quarter had mirrored those experienced in the June quarter, which indicated the Perth property market may have finally found its floor.
“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results. Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment,” Mr Groves said.
Perth’s preliminary median house price for the September quarter came in at $499,000.
“Once all sales have settled, we expect the revised September quarter median to lift to around $515,000, an increase on the June quarter’s $510,000 median,” Mr Groves said.
REIWA analysis shows Perth’s median house price only experienced a marginal one per cent decline when compared to the same time last year.
“Comparatively, between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent. These longer term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago,” Mr Groves said.
Perth’s preliminary median unit price is $395,000 for the three months to September. reiwa.com data projects this figure will lift to $407,000 once all sales have settled, putting it on par with the June quarter median.
“It bodes well for the market that Perth’s house and unit prices are exhibiting signs of recovery simultaneously,” Mr Groves said.
There were 6,960 property sales in Western Australia in the September quarter.
Mr Groves said this preliminary figure was expected to lift to around 8,000 once all sales had settled.
“In the Perth metro region, property sales increased in the September quarter. Once all transactions have settled, we expect sales to exceed 6000, up from 5,730 in June quarter.
“REIWA analysis shows despite softer market conditions, this quarter’s projected sales figure is not far off the 10 year quarterly average of 6,780. Given the challenging economic factors facing the state, it’s a testament to the strength of our local market that it has held up relatively well through the downturn,” Mr Groves said.
Stock levels in Perth continue to decline, falling from 14,071 at the end of June 2017 to 13,043 at the end of September.
Mr Groves said after a prolonged period of rising listings across the metro area, it was pleasing to see substantial declines occurring.
“The September quarter listing figure is 7.3 per cent lower than the figure recorded at the end of June and 7.9 per cent lower than the figure recorded at the end of September 2016.
“With sales activity trending up and listing levels declining, this has improved net demand across the metro area and contributed to the healthy sales figures we’ve seen this quarter,” Mr Groves said.
It took on average 70 days to sell a house in Perth in the September quarter.
“This quarter’s average selling day figure is two days slower than it was in the June quarter, but two days faster than it was in the September quarter 2016,” Mr Groves said.
The proportion of vendors required to discount their asking price improved to 53.4 per cent in the September quarter. This is 1.8 per cent less than the June quarter and 4.5 per cent less than the same time last year.
“It’s pleasing to see fewer sellers needing to reduce their asking price. It means they are listening to the advice of their REIWA agents and pricing their homes competitively from the start, negating the need to discount their original asking price,” Mr Groves said.