A small boost to Perth’s housing market and reduced discounting has property gurus hopeful bigger gains are on the horizon.
Fresh CoreLogic figures showed house prices had lifted 0.1 per cent in value during the first month of 2020. Since October 2019 prices are up 0.6 per cent, with REIWA president Damian Collins encouraged by the small green shoots and three straight months of prices stabilising or increasing. “Feedback from agents on the ground is fairly positive, with good quality stock being snapped up quicker, and the amount sellers are discounting reducing to 6.4 per cent,” Mr Collins said.
“This is a positive sign for the median sale price and if this continues, we should start seeing a gradual increase in prices in the coming months.”
In terms of houses and units, the data shows that the median sale price remains at $480,000 and $375,000 respectively for January.
“(Our) data showed there was a shift in composition of sales in January compared to the previous year,” Mr Collins said. “A greater proportion of transactions (approximately 30 per cent of all sales) occurred below $350,000 which could suggest that first home buyers are making the most of the lower interest rates.”
Overall Perth sales activity and listings for sale both remained stable in January, yet one in three suburbs bucked this trend to record notable improvements in sales.
The top suburbs by sales growth in January included Leeming, Dianella, Woodvale, Ellenbrook and Secret Harbour. Halls Head, Canning Vale, Baldivis, Secret Harbour and Dianella had the highest number of sales for the month, Mr Collins said.
Perth’s overall median rent price continues held at $350 per week while leasing activity was up 26 per cent last month.
Baldivis, Canning Vale, Halls Head, Clarkson and Butler had the most number of properties leased during January. The five suburbs with the biggest increase in leasing activity during the same period were Como, Southern River, Kardinya, Waikiki and Safety Bay.
“Leasing activity typically increases at the start of the year, whether it is part of a tenants new year's resolution to find a new home or simply getting back into a routine after the festive period, which is why we have seen the jump in leasing to 4,608 in January,” Mr Collins said.
Original article: https://www.perthnow.com.au/business/housing-market/wa-housing-market-bump-to-perth-property-values-and-reduced-discounting-positive-signs-bigger-gains-are-close-ng-b881452717z