Cockburn Gazette - - RESIDENTIA­L -

REIWA says the worst is likely over for the Perth prop­erty market, with sta­ble con­di­tions recorded in the Septem­ber quar­ter.

Pre­lim­i­nary data re­vealed steady or im­proved lev­els across most key market in­di­ca­tors.

Pres­i­dent Hay­den Groves said the con­di­tions mir­rored those ex­pe­ri­enced in the June quar­ter, which in­di­cated the market might have fi­nally found its floor.

“We’ve ob­served six months of sta­ble con­di­tions, with both the June and Septem­ber quar­ters post­ing con­sis­tent re­sults,” he said.

“His­tor­i­cally, be­fore a market im­proves there is a sus­tained pe­riod of level stock, sales ac­tiv­ity and house prices, which is what we ap­pear to be wit­ness­ing at the mo­ment.”

Perth’s pre­lim­i­nary me­dian house price was $499,000 for the Septem­ber quar­ter.

This was ex­pected to in­crease to about $515,000 once all sales had set­tled, a slight in­crease on the June quar­ter’s $510,000 me­dian.

The me­dian house price recorded a mar­ginal 1 per cent de­cline when com­pared to the same time last year.

“Com­par­a­tively, be­tween the Septem­ber quar­ters in 2015 and 2016, Perth’s quar­terly me­dian house price de­clined by 2.3 per cent,” Mr Groves said.

“These longer-term trends are a good in­di­ca­tor as to the pos­i­tive di­rec­tion the market is headed, as the rate of de­cline is slower than it was two years ago.”

Perth’s pre­lim­i­nary me­dian unit price was $395,000 for the three months to Septem­ber.

This fig­ure was ex­pected to in­crease to $407,000, putting it on par with the June quar­ter me­dian.

Mr Groves said it boded well for the market that Perth’s house and unit prices were ex­hibit­ing signs of re­cov­ery si­mul­ta­ne­ously.

There were 6960 WA prop­erty sales in the Septem­ber quar­ter.

This num­ber was ex­pected to lift to about 8000 once all sales dur­ing the pe­riod set­tled.

Prop­erty sales in the Perth metropoli­tan re­gion in­creased and were ex­pected to ex­ceed 6000, up from 5730 in the June quar­ter and close to the 10-year quar­terly aver­age of 6780.

Stock lev­els in Perth con­tin­ued to de­cline, fall­ing from 14,071 at the end of June to 13,043 at the end of Septem­ber.

Mr Groves said af­ter a pro­longed pe­riod of ris­ing list­ings, it was pleas­ing to see sub­stan­tial de­clines.

“The Septem­ber quar­ter list­ing fig­ure is 7.3 per cent lower than the fig­ure recorded at the end of June and 7.9 per cent lower than the fig­ure recorded at the end of Septem­ber 2016,” he said.

“With sales ac­tiv­ity trend­ing up and list­ing lev­els de­clin­ing, this has im­proved net de­mand across the metro area and con­trib­uted to the healthy sales fig­ures we’ve seen this quar­ter.”

It took 70 days on aver­age to sell a house in Perth in the Septem­ber quar­ter.

REIWA pres­i­dent Hay­den Groves

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