Sales of homes in Perth have slumped to their lowest levels in nearly two years, with vendors slashing prices and giving buyers the upper hand, the Real Estate Institute of Western Australia says.
Preliminary REIWA sales data for the June quarter showed dwelling sales state-wide were down 7 per cent on the March quarter, the lowest level since December 2008.
The data also showed that 61 per cent of June quarter sales were discounted by an average of 5.8 per cent, up by 0.6 percentage points on the March quarter.
REIWA president Alan Bourke said a fall in first-homebuyers remained a concern, and softening population growth had reduced the number of homes changing hands.
The statistics showed 14,500 homes for sale at June 30, compared to 12,700 in March, a sign that the market has swung back in the buyer's favour, Mr Bourke said.
The average time taken to sell increased by nine days to be just over two months, a 3 day reduction from the June quarter last year.
"Perth's median house price dipped back below the $500,000 mark to $490,000 in the preliminary June Quarter results, but remains almost 9 per cent higher than at the same time last year," Mr Bourke said.
"The dip in the median is due mostly to a surge in sales in the $400,000-450,000 range and a fall in sales ofhomes listed between $600,000 and $2 million.
"Fewer sales in the $1 million to $2 million range shows the top end of the market is still vulnerable, and perhaps those who may have bought under different circumstances have put off buying, instead staying put and renovating or extending their own home or selling their investment property.
"The median may have also been affected by June quarter buyers striking better deals, saving money as more sellers were prepared to discount their asking price."
In rental markets, Perth continues to have a soft vacancy rate, with a marginal fall in the June quarter to 4.3 per cent.
"While the rate sits above the market equilibrium value of 3 per cent there will be little pressure on rents to increase which is why there has been no movement in weekly rental values for 18 months now, " Mr Bourke said.
