Million dollar plus sales in the western suburbs have boosted Perth’s median house price by about 3 per cent, according to the Real Estate Institute of WA.
President David Airey said preliminary reiwa.com data revealed the median house price grew from $480,000 in the September quarter to $495,000 in the December quarter.
He said strong activity in the western suburbs, where sales increased by an extraordinary 57 per cent, were a strong contributor.
“There’s no question that’s the reason for the increase,” he said.
“Buyers of cheaper properties have actually dropped and it seems to me that cheaper market is exhausted of stock.”
Peter Robertson, of William Porteous Properties International, said he had noticed an increase in buyer activity in the western suburbs but not price.
“During the last quarter of 2012 we have seen a distinct spike in the level of activity, certainly in buyers being prepared to out pen to paper,” he said.
“This comes with renewed consumer confidence. People are comfortable with the state of the market and the level of interest rates.”
Mr Airey said 2012 finished on a positive note, with the December quarter being the best quarter of growth and turnover for the year.
“In fact, turnover for the month of December itself was the best result since December 2005,” Mr Airey said.
The data also revealed sales increased by 4 per cent with high activity in the $600,000 to $700,000 range and for homes priced more than $800,000.
Discounting on house prices dropped from almost 60 per cent in the September quarter, to around 55 per cent in the December quarter.
Mr Airey said the number of listings continued to fall during the quarter and was down by 32 per cent on the same time last year.
By the end of 2012, 9200 properties were on the market which included 1800 blocks of land.
The data also indicated that volume turnover in the multi-residential market was unchanged, but buyers were upgrading to more expensive units, apartments, villas and townhouses.
“However, now that buyers have more confidence and sellers are meeting the market with better pricing, the number of selling days has dropped from 71 to 62 for the quarter and this figure has been trending down for a while,” Mr Airey said.