Homes in low-cost suburbs of one major Aussie city are being snapped up at an astonishing rate – some going in just five days – as real estate experts reveal the surprising jump in property inspections and housing prices dominating the start of 2024.
New data from Australian real estate behemoth Ray White has revealed the average time on market for properties in Perth, is now just 11 days – the lowest level recorded for the city and currently the lowest in the country.
Of the top 100 quickest-selling suburbs in Australia, 84 are located in Perth, Ray White’s data reveals.
Properties in Seville Grove, in the city’s southeast, and the outer southern suburb of Cooloongup are among the fastest-selling, with the average time on the market standing at just five days.
The median prices for homes in both suburbs are $462,250 and $475,000 respectively.
In Sydney, the suburbs of St Clair (median price $940,000) and Werrington Downs ($855,000) both led the way with an average on-market time of 11 days.
Properties in Skye and Kilsyth, in Melbourne, closed in at 14 days on the market.
Ray White chief economist Nerida Conisbee said time on market was still significantly higher in most cities compared to 2022 levels, when the market hit its last peak in pricing.
“In January 2022, the average home sold within 22 days. It is now 30 days,” Ms Conisbee said.
“The only two cities where it has declined have been Perth (16 days to 11 days) and Adelaide (34 days to 32 days).
“The key trend however is affordability. Both Perth and Adelaide have the lowest capital city medians.
“At a suburb level, low-cost housing is generally selling the quickest.”
The figures coincide with high levels of property inspections, which Ms Conisbee said was a “good measure” of interest.
January was a strong month with 16.5 visitors per home, rising above the three year average of 15.6.
“Listing authorities are showing that more people are coming to market and weekly pricing is showing that Australian house prices are rising quickly as a result,” Ms Conisbee explained.
John McGrath, chief executive and managing director of real estate business McGrath, said there were good listing volumes to the start of the calendar year amid what he called a “stable” property market.
“Despite economic headwinds and global uncertainty … prices continue to trend upwards,” he said.
Mr McGrath’s comments come after the company posted a strong half-year profit, marked by an underlying earnings before interest and taxes of $4.2m.
It marks a 42 per cent increase over the previous corresponding period.
Net profit after tax for the period rose from $1.8m to $7.5m.
The $5.7m rise includes the sale of selected offices and rent rolls, as well as a lift in the value of McGrath’s investments.