Renters aid house sales
House sales in Broome are projected to return to their normal long-term pattern by the end of the year as more people take on rental properties heading into the tourist season.
Latest REIWA figures predict house prices will return to their 15-year average in the 2015 December quarter after historic lows in the 2014 March quarter.
Despite the rebound, annual turnover was down 14 per cent in 2014 and 34 per cent below the 15-year average.
The average median house price has dropped to $580,000 compared with $585,000 in the 2014 September quarter.
REIWA said the annual median continues to trend down, falling 7 per cent in 2014 compared with the previous year.
But green shoots of recovery were on the horizon.
First National Real Estate Broome principal Allan Griffiths said the number of properties leased through his company over the past month had reached new heights.
"We leased 11 in one day last week and a fortnight before that we did 13 in a week, which was then a new record for us in 30 years," Mr Griffiths said.
He said the high number of residential properties available for lease peaked in February but had now reduced.
"Basically, what we are back into is the old pattern of seasonal employment demand," he said.
"We are coming into Easter so the hospitality and other industries, including construction, that work on a seasonal basis start major projects after the wet season. They are all starting to have an influence again."
Mr Griffiths said the commercial and retail market was less active.
REIWA Kimberley branch chairman Tony Hutchinson said market conditions in 2014 were the toughest he had seen since the pilot strike of 1989.
He said turnover hit a 25-year low in the 2014 March quarter.
But he said sales levels now seemed to be returning to the average seen over the past 15 years in the December quarter, which was "good news for sellers".
"New developments in Broome North and Cable Beach have swung the preference to new build after years of notional shortages," Mr Hutchinson said. He said an increased supply of properties and reduced demand for rentals because of a pullback in population caused by a lack of job opportunities had resulted in a 94 per cent increase in rental stock to almost 200 properties.
Vacancy levels of about 10 per cent had caused a drop in rents of about 10 per cent.
Mr Hutchinson said the future looked brighter on the real estate front in 2015, with positive early signs.
The fall in the Australian dollar and low fuel prices should help Broome have a better tourist season, he said.
