Preliminary data from REIWA shows that Perth median house prices fell … in the June quarter. The data indicates a surge in first home buyer activity in the sub $500k price bracket ahead of the July 1 stamp duty changes, as well as softer sales in the $500k to $900k traditional trade-up bracket.
Property sales remain down overall with turnover falling since the March quarter last year. The number of properties listed for sale, whilst rising overall for the quarter, eased back slightly last week to be at 10,699 at 23 July.
The rental market remains soft, with the median rent now sitting at $450 per week (down $10 from the March quarter) with the number of properties listed for rent increasing to over 6,000 in July.
The bright spots…
The Perth property market is by no means a homogenous one and there are some nearer city suburbs in our area that are noticeably outperforming the market average, namely Morley, which is expected to show an annual house price growth in excess of 7% for the y/e 30 June 2014 as well as a positive quarterly result.
Morley made the Top 10 suburb list for number of houses sold for the quarter. It’s become popular for its infrastructure, affordability, good transport networks and ease of access to the Airport and City.
The market has changed…
REIWA believes that magic number for equilibrium between properties available for sale and buyer demand is 12,000. When the number of properties listed for sale rises above 12,000 the market begins to favour buyers, under this figure, sellers. Whilst we’re still under 12,000 listings, there is no doubt that conditions have changed.
In its analysis on local sub areas, like Vincent/Stirling South East which includes suburbs such as Mount Lawley, Inglewood, North Perth and Mount Hawthorn, REIWA data shows a 35% increase in the number of properties listed for sale in the area since the end of June last year, which has in turn has increased the average number days on market for properties from 41 to 55 accordingly – a significant jump in the average selling time.
The Bayswater/Bassendean sub area, which includes Bedford, Bayswater, Maylands, Bassendean, Embleton and Morley, has had 25% increase in the amount of property listed for sale but only a 1 day increase in the average number of days on market – now 41 up from 40 a year ago. The typically more affordable median prices in these suburbs combined with their proximity to the City, transport, local infrastructure and larger sub-dividable blocks, have made them increasingly popular with a broad range of buyers looking to fulfill both lifestyle and investment needs.
Overall there is still demand for quality and well priced properties, but much less buyer competition than there was at the start of this year and a year ago.
As the market heads towards a more even playing feel between buyers and sellers, the skills of your agent will have an even more significant bearing on the results you achieve. If you want the optimum selling price, select an Agent with proven value adding strategies and a track record of out-performing the market on the average number of selling days. Selecting the cheapest agent or the one that just gave you the highest price in this market could end up costing you $’000,s.
If you’re a landlord, ensure your asking rent is realistic and that your property is clean and well maintained so that you attract a number of potential tenants and can select the best one, rather than having to settle for someone who may be less desirable because the property is empty and they’re the only one that applied.
For a specific discussion about your property, call me on 0405 812 273 or email [email protected] – love to help!