Our “mortgage brokers” blog pieces here have documented the ups and downs of Is the Perth Property Market Finally Stabilising?the Perth, Baldivis and Kwinana property markets for a few years now. The last few years have been just that: a series of ups and downs. Finally, though, it looks like the Perth property market may be stabilising, according to data from the Real Estate Institute of Western Australia (REIWA).
The median price for a Perth metro house for October, November and December 2015 was $540,000. This was a rise of nearly one percent. According to Hayden Groves, President of REIWA, there are less properties for sale and the price is going back up. He sees this combination of economic factors as signs that the market is, indeed, stabilising.
14,539 homes were listed in December, down from 16,475 in December, due to the holiday season. December saw a sales volume of 1,318 in December, down from 1,700 in November.
Some Sales Trends
The removal of the First Home Owner Grant (FHOG) on established homes has affected the sales volume, according to Mr Groves. One of the more interesting trends is that somewhere between 50-70% of sellers with homes in the price bracket most popular with first home buyers are settling for less than their original asking prices.
However, for the “trade up” segment, homes between $500,000 and $600,000, homes are only taking 47 days to sell, 13 less than the average of 60 days. Less than half of the sellers in that bracket are selling for less than their original asking prices.
In December 2015, the median rent rose $5 to $400, which REIWA sees as more evidence of a stabilised market.
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The main takeaway here: prices are about to rise again. They will rise slowly, but they will rise. The market correction of 2015 could be over or it could last a few more months in some suburbs, but expect homes to stay steady or rise again.