Professionals Arthur Johnston Snowball
256 York St Albany
(08) 9841 1777
(08) 9842 5818Contact us
The long, cold and wet winter has certainly had an impact on home open numbers over the last quarter with smaller turnouts or in some cases no visitors to home opens. The strong activity we saw in the March Quarter has quietened off in the June Quarter however there are some positives to take out of it.
Overall the Perth market continues to take a hit with the Median Metro Price falling 1.9% for the quarter and 5.1% for the year to $520,000. Sales volume (preliminary figures) in WA is substantially down; around 30% for the quarter and down nearly 36% compared to the same time last year.
In the Albany region, both Median Price and Sales Volume were down substantially for the quarter; 13.2% price drop and a 39% drop in volume. It should be noted however that prices have only dropped 2.6% for the 12 months to the end of June which is a better result than our Capital City. Also our stock level has fallen by around 18% for the quarter which is a possible leading indicators for a firming of prices.
Rentals have been fairly stable with no change in price for the year, but have dropped slightly for the quarter – down 2.9% to $340pw median rent. The number of rentals available has increased slightly – up 4.5% for the quarter and nearly 17% for the year compared to June 2015.
The Westpac-Melbourne Institute Index of Consumer Sentiment moved past 100 in June – meaning consumers are feeling more positive than negative. The historically low interest rate of 1.5% may have something to do with this and overall is a positive sign for the real estate market.
As is usually the case, properties that are well presented and fairly priced have seen strong interest with many selling in only one or two weeks. Just in the last week, we have sold a couple of near $1m properties in Albany and had a number of sales around $500,000 – all well presented, accurately priced, and well marketed through press, web and social media. Conversely – we have seen a few properties launched to the market recently that are just not going to maximise the result for the owners as preparation for marketing has clearly not been treated as a priority. Likewise those homes that are priced above general expectations are going to struggle in what is still a fairly fragile market.
Let’s hope a thawing in seasonal conditions and the property market are not far away!
(Source: REIWA market update, June Quarter 2016)