Sales activity in the Perth metro region rose in February, with the Real Estate Institute of Western Australia (REIWA) data showing that volumes were up by eight percent compared to January.
REIWA president Hayden Groves said the improve activity in February was welcoming after the traditional lull between the Christmas and New Year holiday period.
“It’s good to see buyers returning to the market after the festive season. For anyone thinking of trading up to a new home, buying their first home or purchasing an investment, 2017 is the year to take advantage of favourable conditions before the market turns again,” Groves said in a statement on Tuesday.
Canning Vale was Perth’s top selling suburb for house sales in February, followed by Duncraig and then Ellenbrook.
“Other suburbs in the mix were Baldivis, Willetton, Ballajura, Hamilton Hill and Thornlie,” Groves said.
Listings for sale in the Perth metro area experienced a small two percent rise in February.
“It’s not unusual to see listings increase in the first couple of months of the year after the Christmas and New Year period. Importantly, while purchasers still have adequate properties to choose from, stock levels are not increasing at an unusually high rate,” Groves said.
“The number of properties for sale in February this year is two percent lower than February 2016, which indicates stock levels have peaked for the time being.”
Median house price Perth’s median house price experienced a minor adjustment in the three months to February, creeping back to $518,000.
“Although we experienced a noteworthy eight percent increase in sales activity, the 1.3 percent shift in the median can be attributed to a change in the composition of sales, with more transactions occurring at the lower end of the market,” Groves said.
Leasing activity in the Perth metro area declined over the month. However, reiwa.com data shows it lifted five percent in the three months to February.
“Although leasing volumes were down last month compared to January, tenants remain very active right now.
And in fact, if we compare February’s rental levels to the same time in 2016, activity is actually up seven percent on an annual basis,” Groves said.
Perth’s overall median rent price was stable in the three months to February, holding at $360 per week.
“Regarding houses and units, this broke down to $375 per week for houses and $340 per week for units,” Groves said.
“Tenants remain the beneficiary of Perth’s rental market; however investors should be encouraged that prices have held up well over the last three months and activity has increased.” reiwa.com data shows the total number of rental listings in Perth declined by one percent over the month.
Groves said there had also been a noticeable improvement in the three months to February, with listing levels now 12 percent lower than they were in November 2016.
“There are no denying listings are higher than we’re used to, but the fact rental stock is no longer increasing at the frequency it once was is an encouraging sign. It suggests levels have peaked and are now stabilising,” Groves said.