Perth properties are selling at a pace not seen since the boom days, with an average property sitting on the shelf for about 22 days in November, according to REIWA data.
It is the fastest average selling time recorded since September 2006, and is 17 days quicker than the same time last year.
REIWA President Damian Collins said the residential sales market had significantly improved in the latter half of 2020, creating the ideal conditions for those looking to sell.
“The demand for quality stock is evident, with properties selling at the same speed as they did 14 years ago when Perth was in a property boom,” he said. “In addition, the level of discounting has reduced to 32 per cent of all transactions, compared to 49 per cent in November 2019.
“With listings for sale down 1.3 per cent in November compared to the previous month and 28.7 per cent lower than November 2019, it’s clear that if you are looking to sell, there hasn’t been a better time for many years.”
Momentum Wealth General Manager Jennifer Wakeman said high attendance at home opens had created a competitive marketplace.
“The lack of stock on the market is leading to high-quality properties selling extremely quickly, and this is especially true for tightly held and established suburbs where owner-occupiers, and recently investors, are competing to enter the market,” she said.
“Our buyer’s agents are working closely with clients to monitor local suburb conditions and adjust their negotiation strategies to suit the highly competitive market – in some cases reviewing terms when presenting offers to ensure our buyers are positioning themselves as strongly as possible.”
In more good news for sellers, Perth enjoyed a 1.1 per cent increase in prices across the metropolitan area and regions for the month of November, according to CoreLogic’s latest home value index, a fourth consecutive month of growth which occurred in line with the rest of the nation.
Every major capital city witnessed growth and CoreLogic Asia Pacific Head of Research Tim Lawless said if the current growth trend persisted, we were likely to see CoreLogic’s national home value index surpass pre-COVID-19 levels in early 2021.
“The national home value index is still seven tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace, we could see a recovery from the COVID-19 downturn as early as January or February next year,” he said. “Low advertised stock levels, together with a rising number of active buyers, is creating a renewed sense of urgency in the market.
“Buyer demand is mostly being fuelled by a surge in owner-occupiers rather than investors, with people looking to take advantage of historically low interest rates, generous government incentives and an increased state of normality.”
CoreLogic also noted price rises were concentrated in Perth’s lower quartile, with an increase in value of 3.1 per cent, but that while rising, prices were comparable to mid-2006 levels with a current median of $463,846, just ahead of Adelaide.
“Breaking it down at the suburb level, reiwa.com data shows 50 per cent of suburbs experienced an increase in median sale price and 29 per cent saw a stabilised median in November,” Mr Collins said.
“Kelmscott saw the biggest increase to its median in November with a seven per cent increase to $353,000, which was followed by Hillarys (up 6.8 per cent), Rockingham (up 4.1 per cent), Marangaroo (up 3.8 per cent) and Armadale (up 3.6 per cent).”
For prospective buyers in the current market, Momentum Wealth Team Leader – Finance Caylum Merrick advised getting your ducks in a row.
“In these competitive markets, buyers who have their finances in order through a pre-approval or pre-qualification are often looked at more favourably by sellers, so we recommend engaging your mortgage broker early on in the process to ensure you’re ready to act when the right opportunity presents itself,” he said.