Housing oversupply battering Perth market
Selling times have blown out in Perth as listings have increased by more than 15 per cent since the start of the year.
The Real Estate Institute of Western Australia said the number of properties on the Perth market had reached 14,000.
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That is an increase of more than 2,000 since the start of the year, according to REIWA.
Sales have slowed by 15 per cent when compared to the same period last year, while the average number of days on the market is now 67, compared with the long-term average of 45.
President David Airey said the jump in listings has been caused by a decrease in population growth and an increase in home building.
“Along with record low interest rates, there has rarely been such a good time to buy and first home buyers continue to be active in the marketplace,” Mr Airey said.
“With this large supply of homes for sale and rent, it’s likely we will see negligible price growth across 2015 and a fairly slow market for those selling property or looking for tenants.”
According to CoreLogic RP Data, the median price for Perth reached $510,000 in February following 0.6 per cent annual growth.
House prices rose 0.7 per cent to $525,000, while unit prices fell 1.9 per cent to $433,000.
Mr Airey said the housing oversupply meant that 2015 was likely to be a year of negligible growth.
