A return of buyer confidence, a fall in listings and strong population growth has triggered a frenzy among WA homebuyers, with many offering tens of thousands above asking prices to secure a property.
Real Estate Institute of WA president David Airey said agents were reporting a shortage of properties in popular price ranges around the median house price of $500,000.
“We are not heading into a boom by any means,” he said. “The market is reacting to pent-up demand, so it’s probably a good time for hesitant sellers to take advantage.”
Toryn Crocker, of Wright Real Estate, is one of many agents struggling to keep up with demand.
Last weekend, three Scarborough villas priced between $530,000 and $590,000 sold on their first home opens with 10 offers between them, including a cash offer.
In Subiaco, the first home open of 254 Nicholson Road caused traffic chaos when 200 prospective buyers turned up.
Selling agent Niki Peinke, of The Property Exchange, said it was the busiest home open she had experienced in her 25-year career. The three-bedroom home sold for $212,000 above the asking price.
Enrico and Denisa Gismondi and his brother-in-law and sister offered $24,000 above the value of a three-bedroom, one-bathroom home in Karrinyup in late January.
They paid $804,000 and plan to demolish the home and build two new homes to live in.
“We sort of thought we would go a little over to outdo (other buyers). I think we did the right thing,” he said.Selling agent Ben Keevers, of Realmark, said he could have written 15 offers but stopped at eight.
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