Perth's housing market has experienced a pent-up demand in the lower end of the market, which has created pressure on prices, according to RE/MAX WA managing director, Geoff Baldwin.
“Right now the local market is being driven along by vigorous competition for properties under $600,000, with many of this lower priced stock attracting multiple offers and sale prices at or even over asking price”, Mr Baldwin said.
“The $600,000 to $1.5 million price range is starting to see the feed through from this activity, however, certainly at a slower pace and with buyers being a lot harder on price.”
In comparison, $1.5 million-plus buyers remain few and the sales in this range continue to be heavily discounted.
Mr Baldwin believes the pent-up demand in the sub-$600,000 market has created pressure on prices, and will push the median price in Perth back up to or beyond the previous highs.
“Collectively, and in most cases individually, RE/MAX WA offices have just recorded the best quarter in the history of the group and there is no sign of this demand subsiding any time soon,” he said.
“News of this renewed buyer interest is causing owners of higher priced properties to raise their expectations, and in many cases stopping sales.”
Mr Baldwin expects that as buyers upgrade, this will result in a slow recovery across the price ranges.