Perth dwelling prices rebound slightly, hinting that downturn may be over

Perth’s median house and unit price increased, according to reiwa.com data.

REIWA President Hayden Groves said reiwa.com data indicated Perth’s median house price would settle at around $520,000 for the June 2018 quarter, which was up 1% compared to the March 2018 quarter and 2% compared to the June 2017 quarter.

“In addition, Perth’s median unit price is expected to lift by 4.9% to $419,500 for the June 2018 quarter, which is 2.3% higher than the same time last year," Groves said. 

"After declining during the March quarter, it’s pleasing to see prices rebound strongly this quarter.

"With the worst of the market downturn appearing over, the improvement in house and unit prices this quarter suggests buyer confidence is returning which should bode well for sellers as we move into spring.”

Sales activity reiwa.com data shows there were 6,900 sales recorded during the June 2018 quarter.

Sales volumes have declined during the June quarter, with the onset of winter having likely contributed to subdued activity levels.

Despite the overall decline in sales, numerous suburbs recorded more sales this quarter than they did last quarter.

The suburbs with the biggest improvement in house sales were North Perth, Queens Park, Singleton, Camillo and Beldon, while West Perth, Balcatta, Rockingham, Claremont and Mount Lawley had the biggest improvement in unit sales.

The composition of sales shifted during the June quarter, with more house sales recorded in the $800,000 and above price range than last quarter.

There were 14,382 properties for sale in Perth at the end of June 2018.

Groves said stock levels across the metro area had declined 1.1% during the quarter.

“We certainly appear to have hit the ceiling as far as listing stock is concerned. Despite fewer sales being recorded this quarter, it is encouraging to see stock levels have continued to be absorbed,” he said.

It took an average of 67 days to sell a house in Perth during the June quarter which is one day faster than both the March 2018 and June 2017 quarters.

Data from reiwa.com shows the proportion of vendors who had to discount their asking price in order to achieve a sale declined by five% between the June 2017 and 2018 quarters.

“With reductions observed in average selling days and discounting, this is a good indicator sellers are listening to the advice of their agents and pricing their property in line with market expectations,” Groves concluded.