Homes for sale plunge to record lows

Listings for sale across Perth fell to a record low of 3,648 at the end of December, according to reiwa.com data.

This was 23.4 per cent lower than November and 49.0 per cent lower than December 2022.

“It’s the perfect storm,” REIWA CEO Cath Hart said.

“We have incredibly high demand, with houses selling in near-record times, plus at this time of year the number of new properties coming to the market slows – people are busy with the festive season and go away and put their plans to sell on hold. As a result, the number of properties currently for sale is extremely low.

“However, this is expected to increase over January.”

Perth sales market

Perth’s median house price continued its upwards trend, reaching $590,000 in December.

This was a 0.5 per cent increase on November and 8.3 per cent higher than a year ago.

The median unit price also rose, lifting 0.6 per cent over the month and 0.7 per cent over the year to $408,000.

“Unit prices have been much slower to respond to market conditions than houses, but they are seeing the effect of ongoing high demand now,” Ms Hart said.

“Our members are reporting that the overall drive to find a home, and particularly the strong motivation to exit the challenging rental market, is seeing greater demand for units. Units are generally more affordable than houses, which helps people put a foot on the property ladder.”

Ms Hart said, with WA recording strong population growth and building completions still at low levels, prices were expected to increase further.

According to www.reiwa.com data the suburbs that saw the most growth in December were Kallaroo (up 10.5 per cent to $1,071,500), Camillo (up 4.4 per cent to $399,750), Mandurah (up 2.4 per cent to $384,000), East Fremantle (up 2.3 per cent to $1,672,500) and Southern River (up 2.2 per cent to $700,000).

Time on market

Houses sold in a median of 10 days in December, nine days faster than a year ago.

According to www.reiwa.com data, the fastest selling suburbs were Lakelands (two days); Cooloongup and Banksia Grove (three days); Dayton, Butler, High Wycombe and Woodvale (four days); and Rockingham, Camillo and Palmyra (five days).

“After hitting record lows in October and November, the time on market did increase marginally in December, however that’s to be expected at this time of year,” Ms Hart said.

“There is usually a strong flurry of activity earlier in December and then things slow down over the Christmas period.

“Homes still sell over the festive season, but it generally takes a little longer.”

Perth rental market

Perth’s median dwelling rent remained stable at $600 per week in December. This was 15.4 per cent higher than the same time last year.

The median weekly rent for houses rose to $620, a 1.6 per cent increase from November and 12.7 per higher than December 2022. The median unit rent also rose, up 3.6 per cent over the month and 20 per cent over the year to $570 per week.

According to www.reiwa.com, the suburbs that saw the most growth in their median weekly rent price in December were Nedlands (up 29 per cent to $900), Wembley (up 27 per cent to $635), Applecross (up 21 per cent to $700), Mosman Park (up 20 per cent to $750), and Kewdale (up 20 per cent to $600).

Ms Hart said more increases were likely.

“WA’s growing population is fuelling demand for rentals as well as established homes,” she said.

“When you have limited supply and high demand, price rises are the outcome.

“On the plus side, rental listings did start increasing towards the end of the year, which may indicate a slight easing of some of the pressure on the market.”

Listings for rent

There were 1,518 properties available for rent on www.reiwa.com at the end of December, a 21.0 per cent decrease from November, but 5.0 per cent higher than December 2022.

“Listings usually drop at this time of year, so this is not a surprise,” Ms Hart said.

“It is a positive sign that they were higher than this time last year, and we hope to see the upward trend continue.”

Median leasing times

Homes leased in a median of 15 days during December, one day slower than November and 12 months ago.

www.reiwa.com data showed the suburbs recording the fastest median leasing times were Erskine (five days); Langford, Byford and Doubleview (nine days); and Cannington, Duncraig, Alkimos, Beckenham, East Cannington and Joondanna (10 days).