Home prices in Perth are rising faster than during the previous market growth cycle, according to the Real Estate Institute of Western Australia (REIWA).
The current recovery in the Perth property market has taken the average growth rate to 0.9%, nearly double the 0.5% increase recorded during the growth cycle that has lasted from 2011 to 2014.
During the previous 30-month growth cycle, house prices in the capital of Western Australia rose 15%. The current growth cycle appears to be eclipsing this growth.
REIWA President Damian Collins said that 12 months after the start of the current growth cycle, prices had already risen by 11%, with most of the growth occurring in the first six months of the year. year.
“For comparison, the total price growth recorded in the first 12 months of the previous bull cycle was 6%,” he said.
Winter slowdown
A common trend in both growth cycles was the short period of moderation during winter. Over the past two months, Perth's growth rate declined to 0.2% in June, but edged up to 0.3% in July.
The same trend occurred in June 2012 when the growth rate fell to 0.2% before recovering towards the end of the year.
"This growth cycle continued for another 24 months after June 2012, which sets a good precedent for why we shouldn't read too much about winter downturns," Collins said.
The slowdown persisted over the past week, with sales activity declining by 11%. Over the period, sales declined in all segments, down 10% for homes, 8% for homes and 18% for vacant lots.
Mr. Collins believes there are many opportunities for further price gains in the Perth real estate market given the low stock of listings and ever increasing demand from buyers.
"Once we enter the spring sales season and the warmer weather goes down, we expect the Perth market recovery to start to pick up again," he said. declared.
Faster selling days, tighter listings
Despite the deceleration in house price growth in Perth, other market indicators have remained strong, according to July figures from REIWA.
In fact, there was a drop in overall residential property listings during the month, driven by homes. Banksia Grove, Lockridge, Darlington, Glendalough and Helena Valley reported substantial declines in listings.
The median time to sell a property also remained short in July at 17 days. Although it was a day slower than in June, the median selling time for the month was still 27 days faster than it was a year ago.
Kingsley was the best-selling suburb, with houses taking an average of only six days to sell. The sales period has also been reduced to seven days in Willetton, eight days in Heathridge, Kinross and Palmyra, nine days in Waikiki and 10 days in Greenwood, Leeming, Hocking and North Perth.
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Saint Pierre
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belmont
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