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House Prices Fall After Sales Rush

02 September 2013

A rush of first-homebuyers in the past three months has triggered a dip in Perth's median house price, figures to be released today suggest.

The Real Estate Institute of WA's monthly snapshot for last month also revealed a 9 per cent rise in rental vacancies in the past three months, prompting forecasts of lower rents.

Sales figures for the three months to the end of last month suggest first-homebuyer activity is "strongly" affecting the market, with the median house price falling 1.4 per cent to $515,000, compared with the three months to May.

"This appears to be due to the large turnover of more affordable homes skewing the median downwards," REIWA president David Airey said.

Most homes were sold in the north-west and southern parts of the City of Wanneroo, with sales increasing between 31 and 36 per cent. Sales rose 21 per cent in Bayswater and Bassendean but turnover in Joondalup fell 20 per cent.

At the end of last month, 9237 properties were listed for sale, up 5 per cent on July, according to REIWA.

However, the institute is warning of reduced land supply after the number of blocks for sale fell 18 per cent.

The overall median Perth rent was unchanged at $475 but for flats, units and apartments it increased by $5 to $460 a week. Rental vacancies are at a three-year high, 75 per cent up on the same time last year.

Mr Airey said he expected median rents to soften in the September quarter.

He said it was too early to gauge the effect of the State Government's move last month to cut the first-homebuyers grant to $3000 for existing homes.

Sally Palmer, from Homehunters Realty in Dianella, said demand in Bayswater from first-homebuyers was the strongest she had seen.

"Mt Lawley and Inglewood are becoming fairly expensive so the next step is Bayswater," she said. "It has lots of good schools, is close to the city, shops and parks and it is a family-oriented suburb." << back to news articles