The property cycle is clearly moving on in Perth where the number of properties for sale has dropped to its lowest in seven years
Real Estate Institute of WA figures show stock levels peaked in April 2011 with a glut of 18,200 properties for sale. That figure dropped to only 9300 at the end of last year.
This is in line with my comments at the end of last year where I explained how 2012 was the year the property market turned.I’ve been speaking with local property experts around Australia as I do my research for my upcoming seminars around Australia and my WA colleagues advise me that demand has returned with a new wave of confidence from both owner occupiers and investors in Perth.
This combined with the low levels of stock for sale should see property prices start to creep up in Perth, where rents have been rising strongly over the last year.
REIWA president David Airey said seasonal factors could also contribute to stock levels and after the Christmas-New Year hiatus, listings were already starting to return.
“Many sellers will remove their properties from market over the Christmas and new year period, simply because it’s a quiet time and people are away,” Mr Airey said.
“These sellers will generally relist in late January and we are seeing signs of that now,” he said.
Mr Hegney said rising prices would lead to more properties coming on to the market.
“But I don’t see it getting back to peak levels,” he said.
REIWA lists the number of houses, units and land lots for sale this week at 9421. The industry suggests that 12,000 properties for sale at any given time is a good balance between supply and demand in Perth.
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