December 2019 data has revealed that properties are selling 16 days quicker than they were in the September quarter, taking only 67 days on average to sell, making it the fastest time to sell since December 2017.
REIWA President Damian Collins said while market conditions were challenging in 2019, the improvements in the quarter were a good sign entering into the New Year.
“Not only did it take only 67 days on average to sell in the December quarter, but the discount sellers are accepting from the original sale price has reduced to 6.8 per cent from 7.5 per cent in the September quarter.
“If this trend continues into 2020, we can expect median prices will begin to increase,” Mr Collins said.
Median house and unit price
reiwa.com data shows Perth’s median house price decreased slightly by 1.4 per cent during the December quarter to $478,000.
“The Perth unit median was also slightly lower at $375,000, however, we have seen an improvement in the vacant land median, which has risen 2.1 per cent to $245,000 since the December 2018 quarter,” Mr Collins said.
Despite this reduction, reiwa.com analysis shows there were 113 suburbs in Perth that experienced a stable or increased median price during the December 2019 quarter.
“The suburb to record the biggest improvement in median house price was Stirling with a seven per cent increase. This was closely followed by Safety Bay, Spearwood, Floreat and Scarborough,” Mr Collins said.
There were 7,418 properties sold during the December quarter, which is eight per cent lower than the previous year.
Mr Collins said this figure was below the September quarter sales figure, which wasn’t unusual given activity tended to slow in the lead up to Christmas.
“reiwa.com data shows there were fewer sales recorded in all price ranges during the quarter, which is consistent with trends typically observed at this time of year.
“Despite overall activity declining, there were a few suburbs that recorded an improvement in sales activity during the December quarter. The top five performing suburbs were Maylands, Belmont, Spearwood, Golden Bay and Wembley,” Mr Collins said.
Listings for sale
There were 12,410 properties for sale in Perth at the end of December.
Mr Collins said the December quarter listing figure was down seven per cent on the September quarter and 23 per cent down compared to the December 2018 quarter.
“There are a number of reasons that have contributed to the decrease in listing stock. Firstly, this is a common seasonal trend we observe, with reiwa.com data showing listings for sale usually lower in December than September,” Mr Collins said.
“Secondly, reiwa.com analysis shows that good, quality stock is being snapped up fairly quickly, which is shown from both the improvements to average days to sell and the discount sellers are accepting – ultimately this means stock is being absorbed at a quicker rate.
“While we don’t expect to see rapid growth in the Perth property market in 2020, REIWA’s outlook suggests sales volumes could start to increase this year. With house prices in Perth remaining relatively affordable and consumer confidence levels on the incline, this could translate into increased activity throughout the year.”
Source From: REIWA