While many of the numbers may suggest a similar story to last quarter, we’ve seen action taken in the last month or so that has increased optimism and shown a country that refuses to rest on its laurels until all cities are back to resurgence. Record interest rate cuts, the introduction of the first home loan deposit scheme, and Perth being reinstated as part of the Regional Migration Scheme are just some of the measures being taken to revive the market. We obviously may need another quarter or two to see the effect of these actions. However, it’s promising to see many of these initiatives based on immediate incentive to get us going sooner rather than later.
Of course, the market remains a buyer’s market. The median house price sits at around $480,000; that’s 1.5 per cent lower than last quarter and four per cent lower than last years September quarter. Units sit at around $379,000 and while they experienced a similar decline to houses from last quarter, they’ve taken 6.4 per cent hit from a year ago.
This information may seem disheartening, however not every numerical decline is necessarily bad news. With only 13,402 properties for sale at the end of the quarter, we’ve seen stock levels in the metro area drop 10 per cent during the quarter and 13 per cent since last year. While winter has seen the typical decline in sales, it’s still promising to see existing stock continue to be absorbed. As REIWA themselves also state, this should hopefully lead to an increase in selling prices.
Top performing suburbs was a matter of familiar faces from last quarter; Baldivis, Canning Vale, Morley, Dianella and Gosnells again round out the top five. However, Floreat, Wellard, Success, Atwell and Craigie have recorded the largest improvements in home sale activity. No matter how the market the performing overall, it’s always positive to see strong activity in areas where we have more of a presence, namely Canning Vale which is home to one of our strongest southern offices!
As always, it’s impossible to gauge the market and make predictions unless the state of our city beyond the housing market is also taken into account. Population growth is steadily improving, and low prices are instilling confidence among not only first homebuyers, but also trade-up buyers who are finally able to upgrade to their dream home. Add to this a raft of optimistic government investment such as METRONET and a recovering resources sector, and there’s plenty to be excited about. We aren’t known as the WaitAwhile state for nothing, but what gets overlooked about that tag more often than not, is that we usually end up getting what it is we were waiting for!