The median house price in WA dropped 4 per cent in the three months to September to $480,000, according to fresh figures from the Real Estate Institute of Western Australia.
The median house price in WA dropped 4 per cent in the three months to September to $480,000, according to fresh figures from the Real Estate Institute of Western Australia.
REIWA attributed to drop, from a high of $500,000 in June, to an increase in the number of houses sold in the $300,000 - $400,000 range and a fall in activity in the $750,000 - $1,000,000 range.
REIWA President Alan Bourke said the large number of properties on the market was creating competition among sellers who were dropping prices in many areas to secure a quicker sale.
"The number of properties on the market has steadily increased over the last year and has now reached 16,000, the highest level since December 2008," he said.
"While listings have increased across the board, there have been notable increases in Melville (26 per cent), Stirling East (21 per cent), Swan (19 per cent), and north-east Wanneroo along with Bayswater-Bassendean, both 17 per cent."
Mr Bourke said this meant the number of sellers prepared to drop their asking price has increased from 60 to 67 per cent.
The average discount is now about 6 per cent off the asking price.
Mr Bourke said a number of localities are above these average figures with the proportion of sellers discounting being higher in western suburbs (84 per cent), Rockingham-Kwinana (80 per cent), Armadale-Serpentine (77 per cent), Hills (72 per cent), Canning and South Perth-Victoria Park (70 per cent.)
"We have also seen increased sales in the lower price ranges, with increased turnover in the local government areas of Canning, Gosnells, Kwinana and Rockingham.
"There is noticeably less discounting going on in the stronger selling areas of Canning (5.2 per cent) and Gosnells (5.3 per cent) and the southern area of Wanneroo (5.2 per cent), while by contrast Fremantle is seeing a greater reduction of 8.8 per cent, Western Suburbs 8.2 per cent and Melville 7.4 per cent." Mr Bourke said.
There were fewer people discounting in the north-west area of Wanneroo (53 per cent), Joondalup South (54 per cent) and Bayswater-Bassendean (55 per cent).
Mr Bourke said that while the average number of selling days had dropped from 66 to 63, the market remains sluggish.
"Turnover in the September quarter is down by about 25 per cent on the long term average which is obviously contributing to the build up of properties for sale," Mr Bourke said.
