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WA property sales at 12-year low

Activity in WA’s property market has reached its lowest point in 12 years, but new-home sales are increasing.

The total number of documents lodged with Landgate — a barometer for total sales across new and established homes — was down 2 per cent last month and down 12 per cent from the same time in 2015.

Victoria Park real estate agent Laurie Kelly said the past few years had been the toughest since he started in the industry in 1971 but believed there were early signs of change.

Mr Kelly added the rental market was just as difficult.

Seller Adam Lee said his $549,000 Redcliffe home had been on the market for 60 days without an offer, even though negotiations for the four-bedroom property started $20,000 below the bank valuation.

Mr Lee said the last time he sold a home he did not even have time to host a home open before it was snapped up.

“We have been getting great feedback but no one is in a hurry to make a decision,” he said. The Housing Industry Association new-home sales report, a survey of Australia’s biggest volume builders, recorded a lift in sales for WA during November.

“The trend decline in new-home sales in the State may have found its floor,” executive director John Gelavis said.

But figures for the November 2016 quarter showed new-home sales were down 18 per cent compared with the same period in 2015.

There was optimism that changes to the First home buiyers Grant would help boost sales further in 2017.

Landgate Acting Chief Executive Jodi Cant said that 2016 was a low year for property transactions, and the December drop was not unexpected.

“Although December continued the trend of 2016, it was expected that the level of activity would decrease as part of the holiday season in the property industry.”

Statistics from the Housing Industry Association HIA stats show the number of loans for new housing in WA fell by 9.5 per cent in November compared to 12 months previously.

Nationally, it increased by 1.1 per cent.


This article was originally published by Kim Macdonald on 23 Jan 2017 via thewest.com.au

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