Perth median house price to hit $500,000

Perth’s median house price is tipped to hit $500,000 mark in the March quarter amid burgeoning confidence, according to the Real Estate Institute WA. 

It follows a 22 per cent jump in the number of properties for sale in the metropolitan area since December, with a current supply of 12,700 properties. 

The figure includes a welcome boost to the notoriously tight market for vacant blocks, with more than 2000 blocks of land for sale at the end of March. 

It is not the first time recently Perth homes have been linked to a half a million dollar median price, with Australian Property Monitors claiming two months ago that homes in the metropolitan area had already reached this level. 

But it is the first time that the more conservative REIWA has made the prediction.

REIWA President Alan Bourke said the increase in listing showed buyers and sellers believed the worst of the global financial crisis was now behind them. 

Soyrce  :  www.thewest.com.au

 

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Perth properties quickest to sell

Perth properties are being sold quicker than any other state capital, new figures show.

Research from property analysts RP Data and Rismark International shows it took 24 days to sell a house in November and two days fewer for units.

The time taken to sell a unit was the quickest in Australia, while only in Canberra (23 days) were houses sold quicker.

The average price for houses and units in the metropolitan area at the end of November was $460,000.

While that was a drop of 1.09 per cent on October, making Perth the only city where prices fell, it was still an increase of 6.47 per cent on the start of the year and a 5.87 per cent rise on the same time in 2008.

The average house price was $485,000, down 1.11 per cent on October, but up 5.94 per cent since the start of 2009, while units dropped 1 per cent on October, but rose 8.55 per cent in 2009, to average $385,000.

The news was not all good for homeowners. Landlords found rental yields dropping, to 3.94 per cent for houses and 4.41 per cent for units, both down 0.04 of a percentage point on October.

Rismark managing director Christopher Joye said the key drivers in the market in the latter half of 2009 were upgraders and investors, and this was expected to continue this year.

Once mortgage rates “normalised” to between 7 per cent and 8 per cent, price growth would drop back. As many borrowers did not reduce mortgage payments when rates fell, they should be well placed to absorb rises.

Source  :  www.watoday.com.au

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Trading places on the net

Two WA businesses have joined forces to resurrect the 80s trend of home trading to give today’s buyers a new approach in the tough economic climate.
  
Tradehomes.com.au launched last week, in conjunction with OrangeTee Real Estate, to offer a forum where sellers can advertise their properties and negotiate an equal trade for other property, cash or any item with an asset value.
  
Common trade items include houses, land, vehicles, boats, gold, gems, stocks, bonds and jewellery, providing the traded assets total the value of the property’s price.
  
Trade Homes Australia director Kara Tripp said the service was nothing new but was giving a new breed of buyers and sellers a fresh option in a difficult market.
  
“At the end of the day, trading has always been going on behind the scenes, with people exchanging properties for properties etc; we are just creating a forum for people to do it,” Ms Tripp said.
  
“It is getting harder for some buyers to get finance so it is just thinking outside the box. If they have other assets, such as a boat, it is essentially turning that into property.” 
   

OrangeTee Real Estate was theexchanging properties for properties, providing support for traders at the negotiation and settlement stages.
  
“A lot of people get quite daunted when it comes to negotiating deals, so we thought it would be helpful to have experienced real estate agents on board, for people who like the idea but are not comfortable doing it themselves,” Ms Tripp said.
  
So far, one deal has involved the trade of an apartment for assets that included gemstones and gold.
  
REIWA president Rob Druitt said the practice was fine as long as it was well managed and researched, with all parties seeking the appropriate valuation and advice before entering into discussions.

 

LOUISE BAXTER  www.thewest.com.au

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