Western Australia is enjoying a run of strong property sales, with sales volumes increasing 60 per cent between the June quarter of 2008 and the June quarter of 2009.
And it seems the good fortune will continue, with marketplace activity indicators displaying increasingly positive results.
RP Data’s head of research Tim Lawless said the average level of vendor discounting and the time it takes to sell a property are two of the best leading indicators available in the marketplace.
Vendor discounting measures the average difference between the original listing price of a property and the final selling price of a property; and days on market measures the average number of days between when a property is first advertised for sale and when the contract is signed.
“Both measures have seen significant falls over the last year. Across the major capitals it is taking around one month to sell a home compared with around 40 days at the same time last year.
“Average discounting levels have fallen from almost 7 percent last year (houses) to just 5.4 percent this year,” Mr Lawless told Mortgage Business.
According to Mr Lawless, more than 45,000 residential properties were added to the market over the last month bringing the total number of properties being advertised for sale above 200,000. New stock being added to the market and total stock levels have remained fairly consistent suggesting absorption rates are matching supply additions.
“We expect new supply coming onto the market will be increasing over the next month as the spring selling season gathers pace,” he said.