Sales turnover lifted during October and November, pushing Perth’s median house price upwards, according to the Real Estate Institute of Western Australia (REIWA).
Sales in the state have returned to normal prices, with REIWA’s latest data indicating that for the three months to November, Perth’s median house price climbed to between $530,000 and $535,000. This is a rise from the previous peak of $525,000 in the June quarter.
REIWA President David Airey said the main reason for the major rise in sales was that Perth was coming out of a big slump in turnover in the September quarter and had returned to more normal conditions.
“The quarterly median for the three months to November was up by almost 4 per cent and due mainly to the composition of sales during this period after strong first home buyer activity pulled the median house price down to $510,000 in the September quarter,” he said.
“While first home buyer activity is still very evident, there was a solid increase in sales within a 10km radius of the CBD and a softening of activity in outer areas, particularly along the coastal sub-regions north and south of the city.
“This shift in sales composition towards more expensive properties selling pulled the median upwards.”
The data also showed that in some of the coastal sub regions, such as parts of Wanneroo, Joondalup and in Rockingham there was a weakening in sales activity that had emerged through the month of November.
“While this retraction is sales is only modest at around 2 to 3 per cent on the previous month, it is accompanied by a drop in listings also in these areas which suggests that the fall in sales activity has nothing to do with oversupply,” Mr Airey said.
“It is more likely that first home [buyer] activity in areas away from the coastal strip has been the focus of buyers in more recent times.”
The number of properties on the market continues to recover from below-average levels over the last year to now reach its highest point for the year.
REIWA data currently shows 8,656 dwellings and 1,199 land lots for sale.