REIWA: Regional WA median house price increases for second consecutive quarter
Regional WA experienced positive median house price growth for a second consecutive quarter, with preliminary Landgate data showing the overall median lifted 1.4 per cent again in the March quarter 2017.
REIWA President Hayden Groves said after a challenging couple of years, it was encouraging to see prices in regional WA show signs of recovery in the recent December and March quarters.
‘When we look at the individual regions, those north of Perth were among the top performers, with Port Hedland, Karratha Urban Area, Broome Urban Area and Kalgoorlie/Boulder all experiencing increases to their median house prices over the quarter.
“The surge in house prices in these areas is likely to be attributed to the improved economic conditions in WA’s northern regions, with iron-ore prices lifting in the March quarter,” Mr Groves said.
Albany Urban Area and Mandurah/Murray’s median house prices also showed signs of strength throughout the quarter, with their median house prices holding firm at $380,000 each.
|Regional centre||Median house price||Quarterly change in the|
|(March quarter 2017)||annual median house price|
|Albany Urban Area||$380,000||0|
|Broome Urban Area||$505,000||UP 3.1%|
|Bunbury Greater||$357,000||DOWN 4.8%|
|Busselton Urban Area||$455,000||DOWN 5.2%|
|Esperance Urban Area||$322,500||DOWN 4.4%|
|Karratha Urban Area||$280,000||UP 5.7%|
|Port Hedland||$282,000||UP 7.4%|
|Overall regional WA||$360,000||UP 1.4%|
According to REIWA, sales activity looks set to rebound in regional WA in the March quarter, with preliminary house sale volumes for the three months to March coming in 14 per cent higher than the preliminary volumes figure recorded in the December quarter 2016.
Mr Groves said while preliminary March quarter volumes were currently sitting below the revised December quarter sales figure of 1,701, once all transactions had settled, volumes for the three months to March were expected to exceed the final December quarter figure.
“Busselton was the stand out performer in regional WA for sales activity in the March quarter, with its preliminary house sales figure of 92 already exceeding the final revised figure for the December quarter by 14 per cent,” Mr Groves said.
REIWA analysis shows although the bulk of transactions in regional WA in the March quarter remained within the $150,000 to $360,000 price range (42 per cent), there had been a lift in transactional activity in the $360,000 to $500,000 range.
“This is likely to have contributed to the increase in regional WA’s overall median, with 29 per cent of all transactions in the March quarter occurring within the $360,000 to $500,000 price range,” Mr Groves said.
“Of all the regions, Albany Urban Area and Busselton Urban Area had the largest proportion of their sales activity occur within the $360,000 to $500,000 price range.”
Average selling days and discounting
REIWA reports it was two days quicker to sell a house in the March quarter than it was in the December quarter.
Mr Groves said this improvement was felt across most of the regions, with seven of the 12 experiencing faster average selling days in the three months to March.
“Port Hedland, Busselton Urban Area and Geraldton/Greenough were among the most improved, with it being 26, 20 and 17 days quicker to sell in those areas respectively over the quarter,” Mr Groves said.
Other regional areas to experience a decline in the number of days it took to sell a house were Northam, Bunbury, Broome Urban Area and Albany Urban Area according to the analysis.