Oversupply of Oversupply

It only took one real estate agent to claim “we have a problem”, now they can’t stop themselves. We noted over the weekend that Western Australian Real estate agents have now decided they can declare their issues too.

HOUSE prices in Perth are on a downward trend with sellers reducing asking prices by 6 per cent as the local market floods with properties for sale, according to the Real Estate Institute of Western Australia.

The latest statistics from REIWA indicate that the number of properties for sale across the metropolitan area has reached the highest level in almost two years.

And fresh data from REIWA has confirmed the median price for Perth properties is falling after reaching a high of $500,000 in June.

REIWA says that in the three months to September, the median price dropped by 4 per cent to $480,000.

The Institute suggests the fall in median price can be attributed to an increase in the proportion of sales in the $300,000-$400,000 range and a fall in activity in the $750,000 to $1 million range.

REIWA President Alan Bourke said the large number of properties on the market was creating competition among sellers who were dropping prices in many areas to secure a quicker sale.

Maybe this is just the next level of tactic to keep the sales rolling on by softening up new sellers? Maybe they have all just been to a Real Estate Anonymous holiday camp? Who knows, our only question is which state is next ? We hear on the grapevine that it is probably Victoria.

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