Perth median house price in gradual fall for 15 months
Perth has experienced its fifth consecutive quarter of falls in its median house price.
Prices fell by about 2% in the June quarter, notching up 15 months of successive decline.
The average number of selling days has increased to 82, more than double the 36 days in 2006 in the midst of the 2004 to 2007 boom.
"Buyers must be patient and realistic about price,” Real Estate Institute of Western Australia president Alan Bourke says.
The price retraction was longer than during the 2008 downturn, when prices pulled back for one year only.
“The big difference is that in 2008 the median fell by 12%, whereas the last 12 months of decline has been half that rate at 6%,” Bourke says.
“So, although the fall in median price has been over a longer period the actual fall in price has been more gradual since the median peaked at $505,000 in March 2010.”
Bourke says he expects the median to settle around $475,000, which places Perth’s median at December 2007 levels, before the big market correction and following GFC.
“Our preliminary data and that of Landgate, which together represents around 80% of the market, suggest there has been an increased proportion of sales in the $350,000 to $500,000 range, whereas sales in other price segments have decline,” Bourke says.
"It’s notable, though, that sales over $1 million remain quite stable and that premium property is holding up.”
REIWA data show that property listings in Perth have been running at around 17,000 for much of the June quarter after peaking at 18,200 during April.
In the rental market the overall median rent is steady at $380 per week, although the vacancy rate has lifted by 9% from 3.2% in March to 3.5% in the June quarter.
