Prices continue to rise as median selling days drop steadily, even during the usual winter slowdown. However, while these sorts of statistics have rightfully fuelled our optimism and been at the forefront of references to our recovering market, it doesn’t quite touch on how often each individual transaction is benefitting the vendor.
Thankfully, new data which addresses this gap in information has come to light, as the number of profit-making sales has increased to 73.8% for the March quarter! This is up from a figure of 66.8% in the previous quarter, as well as only 56.9% for same period last year. Despite this, our rate of loss-making sales is still the second highest of the capital cities to Darwin. This should hopefully mean that with any luck given our recovery in all other aspects, this figure still has plenty of room for improvement as we head into spring.
This news is also particularly encouraging for owner-occupiers, who come out on top strong in these statistics. Since the hold period of properties they live in is obviously more likely to be far longer than the average investor property, 83.6% of them see a profit on resale compared to 69 per cent of investors. In addition to this, house and land continues to reign supreme, with 79.2% of house sales making a profit compared to just 54.5% of units. However, this could very well be in response to a long-awaited increase in unit listing volumes, so that figure is sure to be one to keep an eye on.
It only gets better from a Peard perspective too! Some of our most prominent locations from a sales activity and presence perspective are among the top performers in terms of percentage of sales to make a profit. This includes the City of Joondalup (87.2%), City of Stirling (72.2%), Town of Victoria Park (73.5%), City of Vincent (71%) and City of Wanneroo (72%).
All in all, the main point we want to get across with these stats is the overall legitimacy of this recovery. Unprecedented (we know you’re sick of that word) factors such as former Perth residents mass migration home following COVID, record low stock, building grants, and peoples once-travel money turning into home-buying money have undeniably played their part in the market we see before our eyes. When it comes to these figures however, for the first time we have a clear, promising outlook on what the average sale can do for an individual vendor rather than just the market itself. To put it simply. The proof is in the pudding!