Perth house prices tipped to fall
Perth's property market is in the midst of a slowdown.
Preliminary September-quarter data from the Real Estate Institute of WA shows sluggish sales and an increase in the median house price of less than one per cent to $548,000.
REIWA president David Airey warned that the market was headed for a downturn next year.
"While the median price has lifted a fraction, sales turnover for houses has dropped to its lowest level in two years, listings for sale are trending quickly upwards and rents are falling," Mr Airey said.
Sales turnover was 12 per cent below average and listings were up 30 per cent on this time last year.
Properties for sale had reached 11,935 and were likely to exceed 12,000 over the weekend. "Perth's equilibrium for listings in a balanced market is around 12,000 and indications are that we will clearly surpass this in 2015, which will add to selling days and put downwards pressure on price," Mr Airey said.
"On a more positive note, turnover for units, apartments and villas saw a 7 per cent increase in sales activity, although early Landgate data suggests a 3.3.per cent fall in the median price for this type of stock to about $435,000."
Perth's rental vacancy rate remained at 4 per cent, with a median weekly rent of $450. The number of homes for rent has increased 49 per cent in the past year to 5715.
Sales in regional WA were virtually unchanged during the quarter, with 11,650 dwellings changing hands.
Ken Preston, LJ Hooker WA regional manager, said that while the market was somewhat in a state of flux, it had been in that shape for the past six or so months.
He said an increase in rental properties had taken the sting out of the first-homebuyer market.
Acton director Travis Coleman said the slump in sales was not unusual for this time of year.
"I think 12 months ago there were fewer listings on the market and buyers felt more urgency to buy," he said. "Compared with last year's figures, listings are 25 per cent higher and this has definitely taken some of the pressure off the market.
"It has to be said that while they have risen and continue to rise they are still below what REIWA considers the equilibrium point. We are not seeing listings flood the market and are not expecting a downward push on prices."
