Number of days on market in Perth drops, with sub-$500,000 properties 'selling like hotcakes': Raine & Horne

The average days on market for property in Perth has dropped to its lowest point in four months, according to Raine & Horne data.

The average number of days on market has dropped 15% since June 2012, from 135 days to 115 days.

Raine & Horne North Perth agent Larry Gallagher expects the rate to drop even further with near record-low interest rates, near record-high rents, low stock levels and large population growth.

“Over a thousand people a week are pouring into Perth looking for accommodation, and there currently isn’t enough stock on the market to keep up with the demand,” Gallagher says.

“As a result, accommodation has reached a tipping point, especially with homes listed under the $500,000 mark, which are selling like hotcakes.”

His colleague Nick Pagano recently sold two properties in under a week.

“1/176 8th Avenue, Inglewood, sold in just four days for $480,000, and an older-style home at 4 Latham Street, Ashfield, sold in just two days for $439,000,” Gallagher says.

“Both properties were the subject of multiple offers and sold to first-home buyers.”

RP Data shows the Inglewood property last traded for $430,000 in 2008 after 18 days on market. 

Recent Real Estate Institute of Western Australia figures show property sales jumped 21% in the second week of October.

Midland is one area where the surge of first home-buyers, many driven by increasing rents, is pushing down days on market.

“As soon as a property hits the market it is being bought, especially in the lower-end where first home buyers can usually be found,” says Vince Pileggi, principal Raine & Horne Midland.

"We've been selling properties within a day here. Houses aren't staying on the market longer than four weeks if they're priced correctly."

His office recently sold a property in less than seven days in High Wycombe, east of Perth Airport, for $455,000.

“The purchasers of this home were first-home buyers, and properties priced in this range will often only have one open house before they’re snapped up.”