The CoreLogic house price index for Perth showed a 0.2% decrease in overall property prices for August.
So is the beginning of the end for house price growth in Perth?
We don’t think so.
Fifty-six suburbs recorded growth during the month, bucking the overall figure and proving once again that the Perth market is not homogeneous.
We also think there are seasonal factors at play.
In the last two weeks, we’ve noticed a substantial uptick in buyer numbers at home opens compared to the start of August when we were grappling with some ordinary Winter weather. According to REIWA, sales volumes last week were 8.2% higher than the previous week and 6.3% higher than four weeks ago.
We expect that we’ll continue to see month-to-month fluctuations as consumer sentiment reacts and borrowing capacity adjusts to interest rate rises (don’t you just love the predictions and headlines? Takes me back to when we first went into lockdown). But we are confident that the fundamentals support continued growth, namely WA’s strong economy, low unemployment rate, anticipated population growth, and current housing shortage.
On housing availability, stock levels continue to remain low. REIWA reports that there were 8,391 properties for sale on reiwa.com at the end of August, 1.8% lower than July. In addition, the median time to sell a home in August was 17, one day slower than July but also a day faster than August 2021.
Locally, we’ve had two home sales in the past two weeks that both attracted ten offers, selling in under a week for premium prices. So we’re continuing to see robust demand for quality trade-up homes.
Pressure in the rental market continues, with the median rent price rising a further $10 per month in August to $480 per week. There were 1,907 properties for rent on reiwa.com at the end of August, which is 15 per cent less than July.
It will be interesting to see what September, and Spring, brings – bring on the sunshine!