Perth's house prices fall yet again

24 July 2011

HOUSE prices in Perth have dropped 2 per cent, marking the longest stretch of consecutive monthly falls since the global financial crisis.

According to preliminary data from the Real Estate Institute of WA, the Perth housing market has experienced its fifteenth successive month of house value declines, with a 2 per cent fall in the June quarter.

Once final sales data is collected, REIWA expects Perth’s median house price to settle at $475,000, a level not seen since December 2007.

President Alan Bourke said the 15 months of house price falls was a longer period of price retraction than was experienced in 2008, when prices pulled back for only one year.

“The big difference is that in 2008 the median fell by 12 per cent, whereas the last 12 months of decline has been half that rate at 6 per cent,” he said.

“So, although the fall in median price has been over a longer period the actual fall in price has been more gradual since the median peaked at $505,000 in March 2010.”

Mr Bourke said that according to the initial data, there was increased sales activity in the $350,000 to $500,000 range, with activity in other price segments falling.

“It’s notable, though, that sales over $1 million remain quite stable and that premium property is holding up,” said Mr Bourke, adding that turnover for units, villas and townhouses had been stronger in the June quarter as compared to the previous quarter.

Source perthnow.com.au 

• Rebecca Lawson
• From: Daily Mail
• July 21, 2011