Perth’s median house price showed signs of strength in the December quarter, with the preliminary median for the three months to December 2016 holding firm at $520,000.
Real Estate Institute of Western Australia (REIWA) President Hayden Groves said this preliminary figure was the same as the revised September quarter 2016 median house price.
“It’s a very good sign for the market that prices held up over the quarter. What’s more pleasing is that historically once all sales transactions have settled, the revised quarterly median generally lifts on the preliminary price.
This means we may have actually experienced an increase in price over the quarter.
“It is still too early to make a call on whether or not the market has officially reached the bottom of the current cycle, however these numbers give a very strong hint in that direction.
If you’ve been thinking about buying, I would advise you to act sooner rather than later. There is good opportunity in the current market with improved pricing, record low interest rates and less buyer competition, so it’s the perfect time to purchase your first property or trade-up to your next home,” Mr Groves said.
Sales activity the preliminary dwelling sales figure for the three months to December came in below the revised September quarter figure with 6,465 transactions recorded.
“This is not unusual. Preliminary sales figures are generally lower and tend to be revised up once all transactions have settled.
For example, in the September quarter, the preliminary sales figure was 5,630 – which is significantly lower than the December quarter 2016 preliminary figure – but was later revised up to 8,748.
“It’s also worth noting that preliminary dwelling sales for the December quarter 2016 are five per cent higher than they were at the same time in 2015, with any increase in transactional activity a positive signal that buyer confidence is returning,” Groves said.
Price range analysis first home buyers continued to be active in the Perth property market in the December quarter.
“In the traditional first home buyer market, house sale transactions below $500,000 were up 12 per cent in the December quarter compared to the September quarter, lifting from 49 per cent of total house sale transactions to 55 per cent.
Similarly, in the unit market, activity below $500,000 lifted from 65 per cent of total transactions to 71 per cent. “Unlike markets on the east coast, WA is still very much the ‘land of opportunity’ for first home buyers, with plenty of affordable housing options available to help prospective buyers take the leap into homeownership,” Mr Groves said.
Listings for sale stock levels in the Perth metro area fell two per cent in the December quarter compared to the September quarter, with 13,886 properties listed for sale. This figure is also down three per cent compared to the same time in 2015.
“The decline in listings over the quarter can be attributed to a six per cent reduction in the number of properties listed for sale in the $360,000 to $500,000 price range,” Groves said.
Average selling days It was five days quicker on average to sell a home in the December quarter 2016 than it was in the September quarter 2016.
“The average number of days sellers had their home on the market in the three months to December was 62 days, down from 67 days in the previous quarter,” Groves said.