Lower end of mar­ket ac­tiv­ity in­creas­ing

Western Suburbs Weekly - - Liftout -

BUY­ERS snapped up real es­tate bar­gains in the March quar­ter 2018, with sales for prop­er­ties priced $500,000 and be­low up 5.7 per cent ac­cord­ing to REIWA data.

REIWA pres­i­dent Hayden Groves said in­creased ac­tiv­ity in the lower end of the mar­ket was usu­ally a sign first-home buy­ers were ac­tive and, af­ter ob­serv­ing sub­dued first-home buyer ac­tiv­ity dur­ing the De­cem­ber 2017 quar­ter, it was pleas­ing to see this mar­ket strengthen early in 2018.

“The fi­nal quar­ter of 2017 saw the com­po­si­tion of the Perth mar­ket shift,” he said.

“Last quar­ter there were sig­nif­i­cantly more sales in the higher-priced end of the mar­ket and less in the first-home buyer price range.

“It’s been a dif­fer­ent story this quar­ter, with the bal­ance of sales shift­ing back to the lower end of the mar­ket.”

In­creased sales in lower price brack­ets saw a decline in Perth’s me­dian house price.

The pre­lim­i­nary me­dian price was $510,000.

Once all sales set­tle it is ex­pected to in­crease to $517,000, marginally lower (0.6 per cent) than the De­cem­ber 2017 quar­ter but 0.4 per cent higher than the same pe­riod last year.

Perth’s pre­lim­i­nary me­dian unit price was $401,000, which is ex­pected to in­crease to $410,000, putting it on par with the De­cem­ber quar­ter me­dian.

Mr Groves said the re­sults were in line with REIWA’S 2018 forecast, which ex­pects sta­ble con­di­tions through­out the re­main­der of the year, with mod­er­ate price growth dur­ing the next 12 months.

The num­ber of sales was slightly lower than ex­pected, with pre­lim­i­nary Landgate data show­ing there were 5865 dwelling sales dur­ing the re­port­ing pe­riod.

“We ex­pect around 6603 sales for the quar­ter over­all, which is marginally lower than vol­umes recorded dur­ing the De­cem­ber quar­ter,” Mr Groves said.

There were 14,413 prop­er­ties for sale in Perth at the end of the March quar­ter 2018, a 10.2 per cent in­crease on the pre­vi­ous quar­ter, but 2.9 per cent lower than the March quar­ter 2017.

“While it is pleas­ing list­ings have de­clined on an an­nual ba­sis, the in­crease over the quar­ter is not cause for alarm,” Mr Groves said.

“With over­all sen­ti­ment in WA im­prov­ing and all signs in­di­cat­ing the mar­ket has be­gun to turn, sell­ers are feel­ing more con­fi­dent than they have been and there­fore more in­clined to put their prop­erty up for sale.

“We’ve also seen a sharp decline in ren­tal list­ings over the past year, which has had a flow-on ef­fect to the es­tab­lished mar­ket.

“With some in­vestors choos­ing to sell their ren­tal prop­erty in­stead of lease it, this has con­trib­uted to the rise in the num­ber of prop­er­ties for sale in Perth.”

It took 67 days on av­er­age to sell a house in Perth dur­ing the March quar­ter, an in­crease on the De­cem­ber quar­ter but two days faster than the same time last year.

“With more list­ings on the mar­ket, buy­ers now have more choice, which has had an im­pact on the time it takes to sell,” Mr Groves said.

“It’s very en­cour­ag­ing though, that on an an­nual ba­sis, we’re see­ing av­er­age sell­ing days decrease.” ■

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