Going, going, gone! Perth property market kicks into high gear
Media release - 29th October, 2012
Interest rate cuts and population growth behind drop in 'average days on market'
- Raine & Horne in-house figures reveal that average days on market in Perth have dropped by 15% since June 2012, the lowest average days on market in four months
- Raine & Horne agents are seeing a surge in buyers at the affordable end of Perth’s property market
- Raine & Horne North Perth sells two properties in less than four days on the market
- Properties in Midland are reported to be on the market for less than a week before being sold
Perth’s residential property market is riding a wave of buyer confidence, according to internal statistics from leading real estate group Raine & Horne, which reveal the ‘average days on market’ (ADM) for a home in Perth has plummeted by 15% since June 2012.
“Raine & Horne’s average days on market has fallen by an average of about 5% a month since June, and we are expecting this figure to slide even further as demand for residential property continues to grow,” says Larry Gallagher, Principal Raine & Horne North Perth.
Mr Gallagher cites near record-low interest rates, near record-high rents, low stock levels and the exponential population growth in the West Australian capital as the major reasons for the drop in ADM figures.
“Over a thousand people a week are pouring into Perth looking for accommodation and there currently isn’t enough stock on the market to keep up with the demand,” says Mr Gallagher.
“As a result, accommodation has reached a tipping point, especially with homes listed under the $500,000 mark, which are selling like hotcakes.”
To illustrate this point, Mr Gallagher cited two recent sales negotiated by his Raine & Horne North Perth colleague Nick Pagano, which were listed on the market for less than a week.
“Both properties were the subject of multiple offers and sold to first home buyers.”
Adding to the drop in average days on market for Perth homes, figures from the Real Estate Institute of Western Australia (REIWA) revealed that property sales jumped by nearly a quarter (21%) in the second week of October.
Mr Gallagher says with such market forces at play, now is the time for vendors to be thinking about selling.
“The lack of stock in Perth’s property market has meant that properties which were moving slowly a few months ago, are now fielding offers from multiple parties.”
In addition to the low stock levels, a revived first home buyers market in areas such as Midland has also contributed to the drop in average days on market.
“The purchasers of this home were first home buyers, and properties priced in this range will often only have one open house before they’re snapped up.”
Mr Pileggi adds that with rent prices across the WA capital reportedly skyrocketing by 11.6% in the last 12 months, many first home buyers have emerged from the pool of disgruntled tenants seeking affordable accommodation.
“Under the current conditions, many tenants are now discovering that they can purchase a property within their means for the same price as they would normally pay to rent.”
For those considering a property sale in Perth, contact Raine & Horne North Perth on 08 9328 3322, or Raine & Horne Midland on 08 9274 0111.
For further media information contact:
Larry Gallagher, Principal, Raine & Horne North Perth on 08 9328 3322
Vince Pileggi, Principal, Raine & Horne Midland on 08 9274 0111
Andrew Harrington, National Marketing & Communications Co-ordinator on 02 9258 5448