Falling residential listings in the metropolitan area and strong population growth are putting upwards pressure on Perth house prices, new research says.
Statistics released today by the Real Estate Institute of Western Australia show there are just 8,429 properties currently for sale in Perth, down from 14,092 at the same time last year.
REIWA president David Airey said the metropolitan area’s long-term equilibrium was around 12,000, while the record low was 4,793 in June 2006.
Mr Airey said the shortage of properties was particularly evident in popular price ranges, especially around the median value of $500,000.
“REIWA data suggests that listing stock is trending downwards on the back of strong sales turnover and these properties are not being replaced enough with new listings to meet demand,” Mr Airey said in a statement.
Mr Airey said the market appeared to have turned in favour of sellers, with many vendors holding back with the expectation of better prices in coming months.
“Until more sellers list their properties and until we get more new homes onto the market from builders, then competition from buyers will put pressure on prices,” he said.
But Mr Airey said the figures were not suggesting the market was heading into a price boom.
“The market is reacting to pent-up demand so it’s probably a good time for hesitant sellers to take advantage of a market full of keen buyers and with sales happening quickly for correctly priced property,” he said.