Perth housing market on rise as prices steady, says REIWA

PERTH’S house prices have steadied and sales activity is looking up as listings continue to trickle into the market, according to the latest figures from REIWA.com.

The median house price remained stable in March while reported sales activity in the metropolitan region increased 15 per cent over the quarter.

Baldivis, Ellenbrook, Canning Vale and Morley were some of the strongest performers, recording the highest volume of reported sales for the month.

REIWA president Hayden Groves said the data showed Perth’s median house price for the three months to March 2016 was $535,000 – the same figure recorded for the three months to February 2016.

“We did see the median house price ease back slightly from the three months to December 2015, but this isn’t unusual as there is typically some volatility during the festive season that can skew data,” he said.

“Pleasingly, since the Christmas and New Year period, there has been more balance and stability in the market with the median house price evening out and sales activity increasing on the December 2015 quarter.”

The increase in sales activity was also felt in all sub-regions, with the North-West and South-West experiencing the biggest hikes in activity, jumping 23 per cent over the quarter.

The number of for-sale listings in Perth was reasonably stable in March, lifting moderately by 2 per cent in February and 7 per cent when compared to three months ago.

Mr Groves said this subtle increase was likely due to the autumn selling season being in effect as it is typically the strongest sales period in Perth.

“While there is still plenty of choice available to buyers, listings have stabilised,” he said.

“We’re not experiencing a flooding of the market; we’re seeing a small lift consistent with trends usually observed this time of year.”

In the rental market, prices in Perth remained steady with the median rent for houses and units remaining at $400 and $380 per week respectively for the three months to March 2016.

Listings for rent also held relatively firm, adjusting negligibly by 4 per cent over the month and 5 per cent over the quarter.

Mr Groves said an increase in overseas migration into WA was a likely explanation for why the rental market was showing signs of stability – the Australia Bureau of Statistics’ latest population data revealed net overseas migration had crept back up again in the September 2015 quarter.

“Perth’s vacancy rate has also improved, coming down 5.9 per cent in the three months to March from 6 per cent in the three months to January,” Mr Groves said.