Perth’s median house price dropped by $20,000 in the June quarter from $550,000 to $530,000, the latest data released by the Real Estate Institute of Western Australia shows. The fall of 3.6 percent is the largest drop in two years when it fell in the September quarter 2013.

REIWA president David Airey said it was the same experience with units and apartments, which saw their median drop from $440,000 to $420,000.  In regional Western Australia, the median house price dropped by $10,000 to $380,000 and the median apartment price fell by around $4,500 to $325,000.

"Some of this fall can be attributed to the composition of sales, with a greater turnover of more affordable properties pulling the median downwards, but it’s also clear there is a market correction underway and many sellers are having to discount to find a buyer," said Airey. "Across the metropolitan area almost 60 per cent of sellers reduced their asking price to seal the deal, and where that happened a discount of around 6 per cent was the average reduction."

The increasing number of properties for lease has softened rental prices again. There were 8,128 rental properties looking for tenants at the end of the quarter, up by 1,524 properties on the March quarter and up by 40 per cent more properties than the same time last year. This has led to the metropolitan median rent coming down by $10 to $420 per week for the quarter. 

REIWA says first home buyers continued to be active with the Office of State Revenue reporting 4,820 applications for the first home owners grant during the quarter, however, this was down by 21 per cent, or 1,022 first time buyers, on the June quarter from last year. Around the state first home buyers were paying a median purchase price of $430,000, down from $450,000 on the June quarter last year.  

"Sellers and landlords must listen to their agents about getting the price right for a quick sale or to find a long term tenant," said Airey. 

reiwa.com.au