Perth housing market slows further

Perth's sluggish housing market has continued to slow through the September quarter, according to data released yesterday from the Real Estate Institute of Western Australia.

The REIWA figures show a general fall for the third consecutive quarter in the median house price in Perth with further signs that rents are also easing.

REIWA president Rob Druitt said the institute's preliminary data for the September quarter show that the metropolitan median price has dropped by about 4 per cent, pulling the median down from $445,000 in June to a new median price of $426,000.

"Perth's median house price has now dropped by 10 per cent since the December quarter last year as the market correction continues to ripple through the housing system after the boom," he said in a statement.

"However, it seems that the fallout from the US sub-prime crisis and recent interest rate uncertainty has also contributed to low consumer sentiment in sections of the property market."

The number of properties on the market is largely unchanged from the June quarter, with REIWA recording listings for 17,300 properties during the quarter. This includes 2,250 blocks of land, which is down by 8 per cent on June.

The slowdown is also reflected in the number of selling days which has stretched from 74 days in June to 79 days currently.

Sales volume is up 13 per cent on the June quarter, attributed to first home buyer activity, which in turn has contributed to the decline in median price, given that first home buyers generally purchase low-priced property.

The percentage of sales for houses valued over $500,000 has dropped by 3 percentage points since the June quarter.