Interpac Business and Migration Solutions Melbourne Australia

(July.21)

There has been slightly stronger turnover with units, villas and townhouses compared to houses in the previous quarter.

Perth's median house price has continued its downward spiral, recording a record 15 months of consecutive decline.

The continued negative growth is now worse than during 2008 when prices fell for 12 months before picking up.

However, the present fall has been more gradual, with houses shedding 6 per cent compared to 12 per cent in 2008, according to the Real Estate Institute of Western Australia.

The latest figures show house prices dropped 2 per cent in the June quarter.

REIWA president Alan Bourke said it was the longest period of consecutive decline he had seen during 30 years in the industry. He expected further downward pressure during the September quarter.

"It's unusual it's gone on this long," he said. "Usually it's a more savage correction and the market picks up but this time it's a lower adjustment."

Mr Bourke expected when all sales were finalised, the median price would settle at $475,000 for the June quarter, which was last recorded in December 2007 before the Global Financial Crisis.

The median house price peaked at $505,000 in March 2010.

Mr Bourke said there had been an increase in the number of sales of houses worth $350,000-$500,000 but other price segments had declined. Sales over $1 million remained stable, with premium property holding up.

Mr Bourke said impatient and unrealistic buyers had caused a slowdown in the number of house sales in the June quarter, with about 17,000 sales compared to 18,200 in April.

"Our early data suggest there has been little movement in the median sale price for multi-residential but turnover for units, villas and townhouses has been stronger than in the previous quarter," Mr Bourke said.

"The average number of selling days has increased to 82, the highest level since the boom of 2004-07, when it fell to a low of 36 days in mid-2006.

"Buyers must be patient and realistic about price."

In the rental market, the overall median rent is steady at $380 per week, although the vacancy rate has lifted by 9 per cent from 3.2 per cent in March to 3.5 per cent in the June quarter.

Source from Theage.com.au