The Status of the WA Real Estate Market
According to the measurements of Westpac – Melbourne Institute, 2014 finished out with a record dive in consumer confidence in WA. Reiwa Market Update tags 2014 as a year of softening activity in Perth’s established housing market.
House and multi-residential sales in Perth have slowed and listings have increased during the December quarter of 2014. Sales have declined substantially in January this year compared to last year as reported by reiwa.com data. Despite the declines, stronger near city activity has helped to reinforce the median housing price.
Overall house sales across Regional WA on the other hand, maintained a steady pace during the December quarter but has experienced a drop in annual terms as compared to that of the previous year. The shortfall has been made up for by the strong activity in the Peel and South West.
The big challenge that the Perth market will be facing will be the impact of the completion of the 24,000 dwellings and the transfer of home owners and renters to these new dwellings. Coupled with the slowing population growth, this scenario will definitely affect the established and rental markets extensively.
Information in this article is from the Reiwa Market Update. The Market Update is a quarterly review of the property market in Western Australia and is published by the Real Estate Institute of WA. To read more, download the latest issue here.
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