Article Author – REIWA.
According to the latest reiwa.com data, houses in Perth are selling 27 days faster in September compared to one year ago, taking a median of 28 days to sell rather than 55 days.
REIWA President Damian Collins said it is pleasing to see the established market doing well.
“While the data shows we are seeing improvements, agents on the ground have reported high levels of interest in residential property and multiple offers being put forward on some new listings,” Mr Collins said.
Why are we seeing this trend?
“In September there was a 20 per cent decrease in the number of properties for sale on reiwa.com compared to the previous year. This combined with low interest rates and a return to stronger population growth explains why we are seeing houses sell at a quicker rate.
“While the market overall is on the improve, some suburbs are going better than others, with the top 10 selling suburbs in September all selling well under Perth’s median of 28 days.”
Quickest selling suburbs
Of the top 10 selling suburbs, Subiaco and Kingsley were the quickest selling suburbs taking only 12 days, which is 16 days quicker than September 2019. This was closely followed by Rivervale which took a median of 14 days, 11 days faster than last year.
Darch and Woodvale are also experiencing faster selling times taking 14 days in September which is 18 and 37 days quicker than last year.
“With low stock levels and faster selling days, we can expect the median sale price to start increasing over the coming months. For those who are looking to sell, now might be the time to contact your local REIWA agent,” Mr Collins said.
If you’re looking to sell, find out how to get the best our of your property when selling.
Top 10 selling suburbs
Data in this table is filtered for suburbs with more than 10 house transactions during September 2019 and September 2020 in Perth.
Article Author – REIWA.
Sales activity increased four per cent in Perth this week, with REIWA members reporting 902 transactions.
This increase can be attributed to a 15 per cent rise in house sales, 21 per cent rise in unit sales and 41 per cent fall in vacant land sales over the week.
Properties for sale
There were 10,422 properties for sale in Perth at the end of this week, which is in line with last week.
A closer look at listing stock levels shows house listings remained stable, listings for units increased by one per cent and listings for vacant land decreased by one per cent.
This week’s total figure is two per cent lower than levels seen four weeks ago, and are 25 per cent lower than levels seen a year ago.
Perth rental market
REIWA members reported there were 2,975 properties for rent in Perth at the end of this week, which is one per cent more than last week.
This week’s rental listings figure is four per cent lower than levels seen four weeks ago and are 52 per cent lower than levels seen a year ago.
View our Perth Market Snapshot graph for a detailed breakdown of the past week.
Article Author – REIWA President Damian Collins
With price declines experienced in major capital cities on the East Coast, it’s pleasing to see that once again Perth has seen growth, with CoreLogic’s latest home value index for dwelling values showing Perth increased 0.2 per cent in September.
Breaking it down by individual Perth suburbs, Darlington saw the biggest increase to its median in September with a 4.9 per cent increase to $637,500. Following this was Armadale with a 4.7 per cent increase to $225,000 and Swan View which was up 4.5 per cent to $355,000.
Rounding out the top five suburbs to see an increase in median sale price is Rockingham with a 3.9 per cent increase to $370,000 and Padbury which was up three per cent to $517,750.
Of the top 10 suburbs to see an increase in median, six of them are below Perth’s median sale price of $475,000 and none of them were over the one million mark, which demonstrates first home buyers and trade up buyers have been more active in the market during September.
Properties listed for sale
While it is clear that the West Australian property market is in recovery mode with the worst behind us, we will now have to deal with low levels of supply for some period of time with listings for sale in September decreasing 20 per cent compared to last year to sit at 10,656.
You may have also heard that WA is also in the midst of a rental shortage with the number of properties available to rent dropping below 3,000 in September, compared to 6,169 in September 2019.
Why stock levels are low
There are many reasons why levels have dropped so low for both the rental and sales market. Firstly, WA is almost back to normal population growth rates, sitting at 1.5 per cent for the year to March 2020, a big improvement from the 0.6 per cent per annum only a few years ago.
The housing market is struggling to keep up from a demand and supply point of view and with net migration into WA at the best levels since 2014 before the pandemic, there will be additional pressure on housing demand once borders eventually reopen.
The building bonus scheme does help boost housing supply, however those who have chosen to build will be sitting in rentals over the next 18 months until their homes are built, which does not help us in the short-term.
With prices on the rise and record low interest rates, there has not been a better time in many years for investors and home buyers to enter the market.
To find out how the rest of the property market performed, view rental listings reach eight-year low.