Pos­i­tive signs as ac­tiv­ity up in mar­ket

Western Suburbs Weekly - - News -

BUY­ERS have re­turned to the mar­ket af­ter the fes­tive sea­son, with reiwa.com data show­ing Fe­bru­ary sales vol­umes were up 8 per cent com­pared with Jan­uary.

Can­ning Vale was Perth’s top-sell­ing sub­urb for house sales, fol­lowed by Dun­craig and then El­len­brook.

Other good per­form­ers were Bal­divis, wil­let­ton, Bal­la­jura, Hamil­ton Hill and Thorn­lie.

The num­ber of list­ings for sale also in­creased, up 2 per cent.

“It’s not un­usual to see list­ings in­crease in the first cou­ple of months of the year af­ter the Christ­mas and New Year pe­riod,” REIWA pres­i­dent Hay­den Groves said.

“Im­por­tantly, while pur­chasers still have ad­e­quate prop­er­ties to choose from, stock lev­els are not in­creas­ing at a par­tic­u­larly high rate.

“The num­ber of prop­er­ties for sale in Fe­bru­ary this year is ac­tu­ally 2 per cent lower than Fe­bru­ary 2016, which in­di­cates stock lev­els have peaked for the time be­ing.”

While the num­ber of sales in­creased, Perth’s me­dian house price de­creased in the three months to Fe­bru­ary, drop­ping slightly to $518,000.

“Al­though we ex­pe­ri­enced a note­wor­thy 8 per cent in­crease in sales ac­tiv­ity, the 1.3 per cent shift in the me­dian can be at­trib­uted to a change in the com­po­si­tion of sales, with more trans­ac­tions oc­cur­ring in the lower end of the mar­ket,” Mr Groves said.

Ac­tiv­ity in the rental mar­ket de­clined over the month, but in­creased 5 per cent in the three months to Fe­bru­ary. “al­though leas­ing vol­umes were down last month com­pared with Jan­uary, ten­ants re­main very ac­tive right now,” Mr Groves said.

“If we com­pare Fe­bru­ary’s leas­ing lev­els to the same time in 2016, ac­tiv­ity is up 7 per cent on an an­nual ba­sis.”

Perth’s over­all me­dian rent price was sta­ble in the three months to Fe­bru­ary, hold­ing steady at $360 a week.

“In terms of houses and units, this broke down to $375 a week for houses and $340 a week for units,” Mr Groves said.

“Ten­ants re­main the ben­e­fi­ciary of Perth’s rental mar­ket. How­ever, in­vestors should be en­cour­aged that prices have held up well over the past three months and ac­tiv­ity has in­creased.”

The to­tal num­ber of rental list­ings in Perth de­clined by 1 per cent over the month and were now 12 per cent lower than they were in Novem­ber 2016.

“There’s no deny­ing list­ings are higher than we’re used to, but the fact rental stock is no longer in­creas­ing at the fre­quency it once was is an en­cour­ag­ing sign,” Mr Groves said.

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