The issue of supply vs demand continued to dominate the Perth property market in May with the number of properties available across Perth metro dropping to 5,885 at the end of the month. This number is 8.8% lower than at the end of April and 29.3% lower than 12 months ago. Demand for the decreasing number of available properties sees the number of sales each week to be 15% higher than the number of weekly new listings. For reference, since 2010, sales have typically been 15-30% lower than new listings.
Despite the 11 interest rate rises, demand had not slowed in May with homes selling in a median of 12 days, a record low since REIWA started recording this data and only recorded once before, in March 2021. Factors driving this demand for established houses, other than low stock levels, are WA’s growing population, rental vacancy rates currently being at crisis levels, and the state of the building industry suffering increasing costs and ongoing delays.
Perth home prices increased 1.3% in May and 2.4% over the past 3 months, and while all major capital cities have improved recently, Perth was one of 2 capitals to show year-on-year growth, and the only capital city where dwelling values have returned to record heights. Melville was in the list of top 5 performing suburbs in May, with median house prices increasing by 1.3% to $1,002,500.
With interest rate rise number 12 announced at the start of June, many households will feel the effect when their mortgages switch from fixed to variable rates in the coming months. If this is a concern for you and you would like to speak to one of our trusted mortgage brokers about your options, please get in touch. Or, if you would like to chat about your homes potential sale value or how we can help to increase the value in your home, please get in touch on 0447 120 125 or firstname.lastname@example.org