REIWA says the worst is likely over for the Perth property market, with stable conditions recorded in the September quarter.
Preliminary data revealed steady or improved levels across most key market indicators.
President Hayden Groves said the conditions mirrored those experienced in the June quarter, which indicated the market might have finally found its floor.
“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results,” he said.
“Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment.”
Perth’s preliminary median house price was $499,000 for the September quarter.
This was expected to increase to around $515,000 once all sales had settled, a slight increase on the June quarter’s $510,000 median.
The median house price recorded a marginal 1 per cent decline when compared to the same time last year.
“Comparatively, between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent,” Mr Groves said.
“These longer-term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago.”
Perth’s preliminary median unit price was $395,000 for the three months to September.
This figure was expected to increase to $407,000, putting it on par with the June quarter median.
Mr Groves said it boded well for the market that Perth’s house and unit prices were exhibiting signs of recovery simultaneously.
There were 6960 WA property sales in the September quarter.
This number was expected to lift to around 8000 once all sales during the period settled.
Property sales in the Perth metropolitan region increased and were expected to exceed 6000, up from 5730 in the June quarter and close to the 10-year quarterly average of 6780.
Stock levels in Perth continued to decline, falling from 14,071 at the end of June to 13,043 at the end of September.
Mr Groves said after a prolonged period of rising listings, it was pleasing to see substantial declines occurring.
“The September quarter listing figure is 7.3 per cent lower than the figure recorded at the end of June and 7.9 per cent lower than the figure recorded at the end of September 2016,” he said.
“With sales activity trending up and listing levels declining, this has improved net demand across the metro area and contributed to the healthy sales figures we’ve seen this quarter.”
It took 70 days on average to sell a house in Perth in the September quarter, two days slower than in the June quarter, but two days faster than the September 2016 quarter.
The proportion of vendors required to discount their asking price improved to 53.4 per cent.
This was 1.8 per cent less than the June quarter and 4.5 per cent less than the same time last year.