NKSK version 2

The West Australian today has an article saying that Australian Property Monitors have predicted a price slump of 10% over the next year in Perth's property prices. This comes on top of a 10% fall in the June qtr for some suburbs (e.g. Duncraig) and yet REIWA still maintains:

REIWA: Perth property market is not in a slump
Posted 2 hours 56 minutes ago
Updated 2 hours 50 minutes ago


The Real Estate Institute of WA says houses are taking longer to sell, but the market is not in a slump. (ABC: Graeme Powell)

Map: Perth 6000
An eastern states-based research group claims there is further evidence of a slump in the Perth housing market.

Australian Property Monitors (APM) says properties in Perth are taking longer to sell and are being bought for discount prices.

The company says its figures show that in July this year properties in Perth took an average of 89 days to sell and could be bought for at least six per cent below the asking price.

APM claims that when the study began in February 2002 the average selling time was five days.

The report's authors say the downturn mirrors the slump in the Sydney market four years ago.

But the head of the Real Estate Institute of Western Australia, Rob Druitt, has dismissed the findings.

"It's taking around 60 days to sell a property and unfortunately some eastern states commentators may still be in denial that wa is having a booming economy and that's certainly flowing through to the rationalisation of the property market, " he said.

Mr Druitt says while the property market has levelled out, it is far from being in a slump.

renth

It doesn't matter what the stats are, according the REIWA

"There's never been a better time to buy!"

NKSK version 2

I wonder if there will ever be a time when Rob D will ever say, "Yep, you got me, Perth prices are moving downward"

He'd be great spin doctoring for the US in Baghdad.

bcworld

89 days!!?? I think its more like 8.9 days in Brisbane!

steve99

I heard the report on the radio while driving in to work this morning, first thought, I bet there's already a post on BE about it, 2nd thought I know exactly who will post it....

Exaggeration dont you just love it! a Slump, thats comical!
Its like they went shit we've hyped up a crash for so long and nothings materialised what word can we use that will have an impact...
Crash no thats out, recession no that doesnt work either, levelling/softening/flatenning/calming no there vaguely true and has no impact, lets go with Slump that sounds sort of slow and negative....

Its like they got together in a room a few months ago and thought ok our best shot at this is to wait till the very end of winter, we traditionally know that far fewer houses get sold over winter, when we get a few warm weekends we know its time to run the article.
I bet they couldnt believe it when the numbers came out at only 6% down on advertised prices (which are generally 5-10% above other recent sales in that area).

Still the good news is slump sounds like quite a temporary word to me, so onwards and upwards once spring/summer fully sets in then

NKSK version 2

Excellent - like a moth to a flame!!

I knew you'd be posting within the first 10!!

Amazulu

Without sticking up for Reiwa/Druitt and not getting involved in the debate as i really couldn't give a shit - up, down. sideways who cares? All I know is that in 5 years time houses are going to cost more than they do now - is it really in their interest to talk the market up if it is slumping?
The way I look at it, if you are a REA and the market is slumping or stagnant or whatever, surely talking up prices when properties are not selling is just plain stupid. As a REA, if a house sells for less - but still sells - surely that is better than no sale at all?
Personally I think the market is still very similar to the UK - one report says prices are falling, another says they are rising - which looks to me like the market is stable - ie not a bad state of affairs.

NKSK version 2

I don't think that they are talking up the prices necessarily, I'd have thought that they would be talking up activity. If people believe that prices will increase continuously they are more likely to be actively buying and encouraging developers to build more houses. The more transactions, that take place, the more commission. (Plus of course the fact that as long as real estate agent fees are percentage based, they earn more profit as the median price increases)

Luma

That's the first time I've heard Duncraig has dropped?

bcworld

A REA is much more interested in a quick sale than acheiving top dollar for your property. Getting that extra $20k may mean a lot to you...but to the real estate agent its only $500 extra commision (based on the standard 2.5% in Qld) for the agency of which they might only get a third. They're much more likely to try and convince you to make the sale quickly than spend time and effort pursuing the extra $'s.

It must be true....i read it in Freakonomics!

NKSK version 2

Perth house prices report in the West Australian - 17th or 18th August.

Vash the Stampede

6% is a "discount"? Since when?

Imagine a Myer sale which advertised "a whopping 6% off!" You'd be laughing all the way to David Jones.

Sounds like the market is definitely slowing, though. I guess properties are just too expensive now.

NKSK version 2

Don't be so quick to pour scorn - I have seen boxes of cereal in a major supermarket promoted on the end of the aisle at 5 cents off - orginal price $3.75 Now, $3.70. What percentage is that? 1.3%?

Vash the Stampede

Yes, it's stupid. Now back to real estate...

6% off this house amounts to a $34,000 discount. Sounds like a lot of money, but it's still only 6% and you're still paying $533,000 for a 3x1 on a strata title in Victoria Park! Sheer madness.

Perth is wildly overpriced, and the occasional 6% drop won't change that in a hurry.

Bobcat

This is my 10th year in the industry here in Perth and in those 10 years; bar none............ this is the worst the market has ever been?

I don't care what the experts say............... I deal in facts; unfortunately at the moment............ the market is as flat as a pancake!

The fact of the matter is : our phones aren't ringing as frequently; hardly anyone is visiting home-opens; response to expensive adverts we place is at best abysmal. In short............. the market is stuffed! Any Agent who tells you differently must have a long nose?

Our industry is cyclical by nature so we expect periods of growth and decline; followed by a balancing out. We have learned to take the rough with the smooth. The big question is.......... when will the current market balance out?

Agents in Perth can't complain as we have had a real good run for our money; with vendors alike we have watched in awe as the prices continued to rise rapidly............ perhaps it's now time for that awe to turn to disbelieve as prices are maybe apt to drop somewhat as the market continues to stagnate?

I haven't had a 'proper' job for the last 10 years since I began real estate; so I am not really full bottle on what proper wages are like? I doubt very much if wages have gone up pro-rata in line with the ridiculous state of affairs we now find ourselves in relation to house prices?

The sooner the market stabilises and gets back to some sort of normalcy..... the better for all concerned?

Watch this space.....................