The president of the Real Estate Institute of Western Australia (REIWA) has warned the prognosis for the Perth property market is pointing to a further downturn in 2015.
REIWA president David Airey said while the median price has lifted a fraction, sales turnover for houses has dropped to its lowest level in two years, listings for sale are trending quickly upwards and rents are falling.
“On a more positive note, turnover for units, apartments and villas saw a seven per cent increase in sales activity, although early Landgate data suggests a 3.3 per cent fall in the median price for this type of stock, to around $435,000,” he said.
Sales turnover for Perth houses is now 12 per cent below average and properties for sale reached 10,372 listings in the September quarter.
The softening in sales has seen the number of days on market stretch by two to 59, while the number of vendors dropping the asking price grew from 48 to 51 per cent.
Where that happened, the average variance was a price reduction of 5.3 per cent.
The REIWA data also showed a small increase in turnover among some price ranges below the median, suggesting a shift in first home buyer preferences.
Figures from the Office of State Revenue show a big drop in the median purchase price for first home buyers, down from $456,500 in July to $432,000 in September.
“This is good news for first home buyers on one hand, but it also shows they are becoming harder to find in the established home market,” Mr Airey said.