Perth house values on the rise in April
Perth’s ongoing supply shortage coupled with strong demand saw house prices continue to rise in April.
Property values increased by 0.5% across the country with Perth and Sydney recording the strongest increases at 0.6% and 1.3% respectively, while Darwin recorded a decline of 1.2% in April.
In the year to April, Perth’s median house price increased by 3.2% while dwelling values increased by 1.3% annually.
The strong demand for properties in Perth was reflected in the median days to sell which was just 14 days.
This high level of demand is expected to continue for some time as the government recently announced its upgraded forecasts for population growth (from 1.5% to 1.8% in 2023-24, and from 1.6% to 1.7% in 2024-25).
Housing stock remains low
At the end of April, there were just 6,452 properties listed for sale (down from 7,920 properties 12 months prior). While new properties are coming onto the market, the short selling time means that the number of available properties remains very low.
The graph below, which includes properties for sale and for rent, demonstrates the downward trend of stock availability within the Perth market.
Source: REWIA and Momentum Wealth Research
Rental listings also hit record lows
In April, there were just 2,008 properties available for rent while the vacancy rate was just 0.7%. Adding further pressure, REIWA reported that the median rent for houses increased in April to $575. This is a 4.5% increase from March and a huge 19.8% increase over the year.
The graph below illustrates the declining number of available rental homes in Perth and the persistently low vacancy rate.
Source: REWIA and Momentum Wealth Research
Latest economic data shows inflation easing
The latest data shows that inflation eased in the March quarter with the CPI recording an annual rate of 7% (ABS). The number was in line with economists’ predictions, and slower than the 7.8% pace recorded in the December quarter.
As the quarterly and annual CPI continues to stabilise, many are predicting that the RBA will soon reach the peak of its cash rate rising cycle.
Source: ABS