Perth’s median house price up for second successive month

Perth’s median house price up for second successive month

PERTH’S property sales and rental markets ended the year on a positive note, according to the latest reiwa.com data.

The Perth median house price increased for the second month in a row, up 1.9 percent to $535,000 in the three months to December 2016.

REIWA president Hayden Groves said it was a welcome trend and suggested that the trade-up sector of the market was recovering.

“Since the second half of 2016, we’ve seen prices across the metro area start to lift on a monthly basis,” he said.

“If you’re a buyer waiting for the ‘bottom of the market’, you would be wise to make a buying decision soon should this trend continue.

“The benefit of buying now is that there is currently less competition from other buyers, so you’re more likely to find a home or investment property that genuinely meets your needs.”

Listings for sale in Perth declined 11 per cent in December, with 13,883 listings recorded in the metro area.

MORE: Perth’s 2017 real estate forecast

“It’s not unusual for listing volumes to drop off in December as the market tends to be quieter over the festive period,” Mr Groves said.

“More significantly though, listings in December 2016 were three per cent lower than in December 2015, which is a good indication that we’ve seen supply peak.”

In line with seasonal trends, leasing activity softened slightly in December, falling two per cent over the month.

On a very positive note, activity was 27 per cent higher than in December 2015.

“We expect to see a slowdown in leasing activity across the month as people prepare for the holidays, so a two per cent drop isn’t a concern,” Mr Groves said.

“The hike in the number of properties leased on an annual basis however is very pleasing and there’s been a significant increase compared to the same time in December 2015.

“Despite listings for rent remaining above the long-term average, tenants are still very active in the market and recognise they have good choice to secure a home at a competitive price.”

Another positive sign for the Perth rental market was that the median house and unit prices remained steady over the three months to December 2016, at $380 and $340 per week respectively.