A slowing of first home buyer activity and weaker top end sales saw market activity compress with increased house sales in the $400-$800 range. Listings across the Perth market are now starting to recover as first home buyer activity slows.
At the same time, rental listings were stable across the quarter rather than falling which is the norm for the March quarter, indicating that stock flowing into the rental market is likely to grow significantly across 2014 as new housing is complected. This is likely to be exacerbated into 2015 by a steady stream of new high density stock flowing into the market looking for tenants.
The recent tough State and Federal budgets has knocked consumer confidence as increases in government charges and changes to benefits come into play.
With the softening of first home buyer activity and weak investor activity, listing numbers have started to recover, increasing 16% across the quarter to 10,068, the highest level since mid-December 2012.
Increased stock and less first home buyer demand has seen the average selling days increase by 6 to 56 which is 1 below the March quarter 2013 figure.