Homes are selling in a median of 12 days, REIWA says
The number of properties available for sale in Perth has reached a significant low, with only 5,885 properties remaining by the end of May, according to the Real Estate Institute of Western Australia. This represents an 8.8% decrease from April and a staggering 29.3% drop compared to the same period last year.
REIWA CEO Cath Hart said that demand hadn’t slowed despite repeated cash rate hikes.
“Homes are selling in a median of 12 days,” Hart said. “This is the fastest median time on market since we started keeping these records in 1998 and has only been recorded once before, in March 2021. And despite another rate rise [Tuesday], we expect demand to remain strong. WA’s population is growing and people are choosing to buy established homes rather than tackle the rental market. Increasing costs and ongoing delays in the building industry are also seeing people buy rather than build.”
Sales have consistently outpaced the number of new listings in the past two months, leading to a significant reduction in the inventory of homes available for sale on reiwa.com. According to Hart, the weekly number of sales has exceeded the number of new listings by 15%, which is an unusual occurrence. Historically, sales have typically been 15-30% lower than new listings. This trend may lead to a further decline in the number of properties available for sale if it continues, Hart said.
Houses remain the most sought-after property type, with the number of available houses dropping below 2,700, a level not witnessed since April 2010. The $500,000-to-$1 million price bracket experienced the highest sales activity, while sales numbers declined in the under $500,000 price range, REIWA reported.
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Perth's property values have displayed resilience, as indicated by the CoreLogic home value index. In May, the index recorded a 1.3% increase, while over the past three months, it rose by 2.4%. Unlike other major capital cities, Perth and Adelaide have exhibited growth year on year, with Perth being the sole capital city where dwelling values have returned to record highs, according to REIWA.
According to reiwa.com, several suburbs experienced notable growth in house prices during May. Hillarys saw a 5.8% increase, reaching $1,100,000, while Kinross rose by 2% to $632,500. Halls Head, Secret Harbour, and Melville also witnessed price increases.
Rental market tightness continues
In the rental market, the median rent price in Perth remained steady at $550 per week in May compared to April. However, it has increased by 3.8% over the past three months and by 17% since May 2022. Notably, North Fremantle, Nedlands, and Shenton Park saw substantial growth in their median rent prices.
The rental market continues to be tight, with 1,969 properties available for rent at the end of May, representing a 1.9% decrease from April and a 13.8% decrease compared to May 2022. Hart said that rental listings briefly surpassed 2,000 during May but declined afterward. She expected rental listings to remain around these levels for the rest of the year due to current market conditions.
The median leasing time for rentals in May was 15 days, one day faster than in April.
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