Perth Market Snapshot for the week ending 24 October 2021

Sales activity was stable in Perth last week, with REIWA members reporting 1,010 transactions. This stability can be attributed to a one per cent increase in house sales, a five per cent increase in unit sales and a 27 per cent decline in land sales. There were 8,695 properties for sale in Perth at the end of last week, which is two per cent more than the previous week.

New listings continue to rise, but are they in the areas where you want to buy?

As lockdown restrictions ease across Sydney, Melbourne and the ACT, the spring selling season has started in earnest, and vendors are piling properties onto the market. New listings have surged 28.2% nationally in the four weeks to mid-October, amounting to more than 45,000 new properties added to the market. The news could be a relief for buyers, because it means they have more stock to choose from after an extended period of relatively short advertised supply. But this raises important questions: is the freshly advertised stock sitting in parts of Australia where people actually want to buy? Or, is this an indicator of vendors trying to offload properties that have not seen high levels of demand? Looking at listings data in more detail, it seems that the answer is a bit of both.

Perth Market Snapshot for the week ending 17 October 2021

Sales activity was stable in Perth last week, with REIWA members reporting 1,017 transactions. This stability can be attributed to an eight per cent increase in house sales, a five per cent decline in unit sales and a 37 per cent decline in land sales. There were 8,550 properties for sale in Perth at the end of last week, which is one per cent more than the previous week.

Housing affordability pressures create pain for apartment upgraders

Rapid growth in Australian housing values and rents over the past year has contributed to greater affordability pressures for households. ABS lending data shows first home buyer finance commitments have fallen -22.8% since January 2021, and rising rent prices have created housing stress for tenants, particularly in parts of regional Australia.

The 19 Perth suburbs where unit prices are growing faster than house prices

Unit price growth is outperforming house price growth in 19 Perth suburbs, with Joondalup, Maylands and Rockingham the top three suburbs where unit price growth is stronger than house price growth.   REIWA President Damian Collins said it is pleasing to see units in these suburbs benefiting from the strong buyer demand and joining in on the Perth property market recovery.   “Unit prices were especially impacted during the market downturn, falling 17 per cent since their peak compared to house prices which fell 13 per cent. Typically, it takes a longer time for the unit market to catch up to houses when prices rebound, however, these 19 suburbs are bucking the trend and seeing unit prices grow at a stronger rate than houses,” Mr Collins said.   Of the 19 suburbs where unit price growth is outpacing houses, Mosman Park recorded the biggest increase to its median unit sale price over the year, lifting 39.3 per cent.

Perth Market Snapshot for the week ending 10 October 2021

Sales activity increased 25 per cent in Perth last week, with REIWA members reporting 1,024 transactions. This increase can be attributed to a 21 per cent increase in house sales, a 25 per cent increase in unit sales and a 67 per cent increase in land sales. There were 8,445 properties for sale in Perth at the end of last week, which is one per cent more than the previous week. A closer look at listing stock levels shows house listings increased by two per cent, unit listings were stable and vacant land listings decreased by one per cent. Last week's total figure is one per cent lower than four weeks ago and 19 per cent lower than a year ago.

Australian housing market surpasses $9 trillion valuation

Just five months after reaching $8 trillion in value, CoreLogic has today announced its estimate of the total value of residential real estate in Australia has surpassed a new record of $9.1 trillion. The surge in value follows the recent broad-based capital gains witnessed across the country, with most housing markets now beyond their peak. CoreLogic Head of Research, Eliza Owen, says “The value of Australian residential real estate has surpassed $9 trillion dollars over September. This comes just five months after the market exceeded $8 trillion over April. “This puts housing values around 28.2% higher than the estimated value of superannuation, the ASX and commercial real estate combined. “The increase in value has coincided with national house values reaching $719,209 over September, and units sitting at $586,993. The Australian dwelling market increased 20.3% in the year to September, which is the highest rate of annual appreciation since June 1989,” says Ms Owen.

Monetary policy remains conducive to house price growth, but headwinds could be on the horizon

Today the RBA maintained its current monetary policy settings, with the cash rate target remaining at 0.1%, and the interest rate on exchange settlement balances at 0.0%. Likewise there was no change to the rate of government securities purchases with purchases expected to continue at $4 billion per week until at least mid-February of next year. The low cash rate target has induced a continued decline in typical mortgage rates, supporting an increase in residential real estate values of 20.3% in the 12 months to September.

Perth Market Snapshot for the week ending 3 October 2021

Sales activity decreased 22 per cent in Perth last week, with REIWA members reporting 828 transactions. This decrease can be attributed to a 20 per cent decline in house sales, a 16 per cent decrease in unit sales and a 44 per cent decrease in vacant land sales. There were 8,360 properties for sale in Perth at the end of last week, which is similar to the previous week. A closer look at listing stock levels shows house listings increased by one per cent, unit listings were stable and vacant land listings decreased by two per cent. Last week's total figure is similar to levels reported four weeks ago and 20 per cent lower than a year ago.

Perth house prices soar 18 per cent in last 12 months

Perth price growth has accelerated over the last year, with CoreLogic data confirming the Perth home value index has increased 18.1 per cent in the last 12 months. This comes after CoreLogic revealed a divergence in its hedonic index* which had undervalued the Perth home value index by 8.4 per cent. This correction has pushed Perth’s annual price growth from 10.8 per cent as originally reported in July to 18.1 per cent in September. REIWA President Damian Collins said the revised CoreLogic figures revealed the Perth price growth trajectory had performed even better than anticipated, which was welcome news for home owners and sellers.

Where to look for homes under $400,000 in Perth

While the Perth market has been pushed up by local buyers over the past year, there are still a handful of places where three or four-bedroom properties are affordable.

Closures of Western Australia’s borders throughout COVID-19 has seen strong local investment in Perth property, which can make it harder for those looking to get their dream home at an affordable price.

Perth Market Snapshot for the week ending 26 September 2021

Sales activity increased 19 per cent in Perth last week, with REIWA members reporting 1,074 transactions. This increase can be attributed to a 10 per cent increase in house sales, a 32 per cent increase in unit sales and an 80 per cent increase in vacant land sales. There were 8,373 properties for sale in Perth at the end of last week, which is two per cent less than the previous week. A closer look at listing stock levels shows house listings decreased by three per cent, unit listings decreased by one per cent and vacant land listings decreased by one per cent.

The Perth school zones where house prices have soared: Domain Schools Zones Report

Demand for homes in the school catchment zone of Eastern Hills High School in the Perth Hills suburb of Mt Helena has seen house prices skyrocket by more than 40 per cent over the past year, according to new research.

Lift off for new listings, as Australia’s spring selling season begins in earnest

Freshly listed housing stock is starting to lift as the spring selling season begins to heat up. Every Australian capital city has seen a lift in the number of new real estate listings over recent weeks, with some of the largest listing increases recorded in those capitals navigating lockdown. Despite this, the new listings trends remain below the five-year average in every capital apart from Adelaide, Perth and Darwin.

Perth Market Snapshot for the week ending 19 September 2021

Sales activity increased one per cent in Perth last week, with REIWA members reporting 911 transactions. This increase can be attributed to an eight per cent rise in house sales, however unit and land sales fell by 11 per cent and 19 per cent respectively. There were 8,537 properties for sale in Perth at the end of last week, which is in line with the previous week. A closer look at listing stock levels shows house and unit listings were stable, however vacant land listings increased by two per cent. Last week's total figure is on par with levels recorded four weeks ago and 20 per cent lower than a year ago.