Median property prices rise in June quarter: REIWA

Stock image.
Stock image.

HIGHER sales activity in the $800,000-and-above price range is expected to see the Perth median house price increase for the June quarter 2018 according to REIWA.

President Hayden Groves said data indicated Perth’s median house price would settle at around $520,000 for the quarter, up 1 per cent from the March quarter 2018 and 2 per cent higher than the June quarter 2017.

“In addition, Perth’s median unit price is expected to lift by 4.9 per cent to $419,500 for the June quarter, which is 2.3 per cent higher than the same time last year,” he 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.” data showed there were 6,900 sales recorded during the June quarter.

Mr Groves said sales volumes had declined during the period, with the onset of winter having likely contributed to subdued activity levels.

“It’s not uncommon for activity to drop off this time of year,” he said.

“Traditionally, activity tends to slow during the winter months before picking up again in spring.”

Despite the overall decline in sales, many 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,” Mr Groves said.

The composition of sales shifted during the June quarter, with more house sales recorded in the higher price brackets than last quarter.

“The June quarter 2018 continued the trends observed during the December quarter 2017, with good quality family homes attracting a lot of attention in aspirational areas,” Mr Groves said.

“As the WA economy begins to regain strength and owner-occupier loans remain the most affordable they have been in decades, buyers are recognising there is good opportunity to secure a family home in areas that might previously have been considered out of reach.”

Stock levels declined 1.1 per cent during the quarter with 14,382 properties for sale in Perth at the end of June.

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

It took an average of 67 days to sell a house in Perth during the June quarter, one day faster than both the March 2018 and June 2017 quarters. data also showed the proportion of vendors who had to discount their asking price in order to achieve a sale declined by five per cent 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,” Mr Groves said.