Sales activity has been more subdued lately with listing growth also slowing.
Overall sales fell 8% this week to 797 the lowest in four weeks.
Top selling suburbs to week ending 26th November for north of river were East Perth and Dianella. While south of river Baldivis took top spot.
Growth in listings has slowed over the last two weeks.
Current data from the Real Estate Institute of Western Australia released on 29th August, 2014, show no movement in Perth’s median house price for August.
REIWA president David Airey said the metropolitan median price was steady at $540,000 but that sales turnover had slumped. ‘Turnover for houses is down by almost 25% for the three months to August, however there is always a seasonal dip in sales during the winter months and this tends to pick up as we head into Spring weather,’ Mr Airey said.
There were 1,734 reported sales in the month of August, down by 6 per cent on July. Sales were weakest through cities of Stirling, Fremantle, Vincent and Kwinana along with the western suburbs. Mr Airey said low consumer confidence was impacting on the market. “The number of properties on the market is up by 1 per cent for the month of August, now sitting at 10,049 listings,” Mr Airey said.
Increased listings were strongest through the cities of Bayswater and Bassendean, up by 54 properties to 406, and also through City of Vincent, up by 30 properties to 215. Listings fell most strongly through the northern end of Joondalup, dropping 43 properties to 231.
Mr Airey said the rental market was also showing signs of stabilisation, with no change in the median rent.
A number of prestige suburbs have lost value while a mix of suburbs have shown strong growth.
Residential Suburban Winners
The following suburbs recorded the largest growth in Median House Prices in the last 12 months end 30th June 2014, according to REIWA data.
Alfred Cove 24.9% growth
Coolbinia 20.4% growth
East Cannington 20.0% growth
Wembley 19.6% growth
Golden Bay 19.3% growth
Swanbourne 18.8% growth
Rossmoyne 18.1% growth
Kenwick 18.0% growth
North Fremantle 17.9% growth
Helena Valley 17.7% growth
Residential Suburban Losers
The following suburbs recorded a decline in Median House Prices in the last 12 months ending 30th June 2014, according to REIWA data.
Mt Lawley – 5%
Menora – 4.7%
City Beach -1%
Dalkeith – 1.1%
Cottesloe – 4.2%
According to REIWA preliminary data out today, Perth’s median house price is $549,000, based on these early figures Perth had enjoyed growth over the last financial year of up to 6%.
Sales for the month were down by around 400 properties to 1,892 but this was not unexpected. While turnover is down on reported contracts, this seasonal dip in sales activity is always experienced in the winter months.
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.
Extract from REIWA market update March Quarter 2014
Did you know…. Residential sales are down by approx 50 transactions per month across the Perth metropolitan area however on a positive note the suburb of Girrawheen has showed a value increase of 16.8% (March 31st 2014) with a median house price of $388,000. Source REIWA research.