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Regardless of Falling Sales, Property Prices Stay Calm and Firm in Western Australia

February 19, 2015

Real Estate Institute of Western Australia (REIWA) released a quarterly analysis that shows decline in property sales but prices remain steady.

David Airey, president of REIWA said – Sales activity had peaked two years ago and had been trending down since the March quarter of 2013. Turnover of the December quarter is about 14% below the 15 year average. This situation is likely to affect the housing market for all of 2015, but we should have a clearer picture of trends by the end of the March quarter.

He added – Perth’s median house price lifted marginally in the December quarter last year to settle around $553,000. This is at variance to Landgate (who provides Government, business and individuals with land information and geographical data) which is reporting a preliminary median of $540,000, but this is likely to be revised upwards with further settlements. It looks like Perth will have experienced growth of around 4.6% when compared to 2013.

Certain inner-city areas such as South Perth/Victoria Park and City of Belmont saw a dip in median price of 4% and 7% respectively. Furthermost, outer areas also saw some inactivity, while places like Kwinana and Serpentine-Jarrahdale were the exclusion.

In fact, Kwinana saw a notional 6 per cent lift in median house price, probably due to the increased number of sales from brand new stock – David Airey said.

According to Mr Airey – The distribution of sales within various price ranges was pretty steady, although there was greater activity in the more affordable $400,000-$450,000 range, as well as some increased sales with homes over $1 million. The stand-out feature from the quarter was the 28% spike in listings, taking the number of properties for sale to over 13,000, before settling back to around 12,000 by the end of the year.  More recent data showed listings haven’t bounced as dramatically as might be expected across January, however this may change as the holiday season finishes.

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