Houses in Perth sold in a median of eight days in October, which is a new record and nearly twice as fast as the 15 days recorded in October 2022.
Real Estate Institute of WA (REIWA) chief executive officer Cath Hart said the speed of sales reflected the incredible demand for established homes.
"It's a perfect storm, with strong population growth coming up against the challenges in the rental market and the ongoing constraints of building," Ms Hart said.
"As a result, many people are choosing to buy, rather than build or try to find a rental."
Ms Hart had some advice for buyers looking for a home in the current market.
"I've had people say no sooner do they see the for sale sign go up, then an under offer sticker goes on it, and they find it disheartening," she said.
"It is a challenging time.
"If you are looking to buy, you need to be prepared - ensure you have your finances organised so you can make an offer when you see a home you like, be patient - homes are still coming to the market in reasonable numbers, they're just selling quickly and you will find one eventually and be persistent - if you keep trying you will be successful.
"You also need to be incredibly proactive - sign up for alerts on reiwa.com so you are made aware of new listings as soon as they come online, and also register your interest with REIWA agents in the areas where you are looking to buy.
"They can contact you as soon as a suitable property becomes available, possibly before it officially hits the market.
"Finally, you may want to consider engaging the services of a buyer's agent."
According to reiwa.com data, the fastest selling suburbs in October were Cooloongup and Seville Grove (three days), Huntingdale (four days) and Greenfields, Coodanup, Gosnells, Kelmscott, Mandurah, Orelia and Tapping (five days).
"Many of these suburbs have been on the fastest selling list several times in the past six months," Ms Hart said.
"Cooloongup and Greenfields have made six appearances, while Seville Grove has made four.
"While not on this month's list, Armadale has also appeared four times since May.
"Despite recent price growth, these areas remain very affordable, which adds to their appeal."
The Perth median house price rose to a new high of $575,000 in October, an increase of 0.9 per cent from September and 6.5 per cent from October 2022.
The median unit price remained stable at $400,000, but has recorded a decline of 1.7 per cent year-on-year.
"We certainly expect the median house price to increase further over the rest of the year," Ms Hart said.
"And while the unit price has been steady for some time, the underlying data suggests it will show an increase in coming months."
According to reiwa.com data, the suburbs that saw the most growth in October were Mosman Park (up 3.8pc to $1,910,000), South Perth (up 2.7pc to $1,875,000), Manning (up 2.7pc to $945,000), Spearwood (up 2.7pc to $575,000) and Cooloongup (up 2.5pc to $458,500).
Carramar, Claremont, Hammond Park, Caversham and Byford also recorded moderate growth.
There were 5011 listings on reiwa.com at the end of October, which was a 2.7pc increase on the 30-year low recorded in September, but 37.4pc lower than the same time last year.
"The significant difference between now and 12 months ago is the speed of sales," Ms Hart said.
"There were 7999 properties for sale at the end of October 2022, but the median time on market was 15 days.
"Homes have been selling quickly for most of this year and this is keeping the number of properties for sale on reiwa.com low.
"Sales are continuing to outpace new listings.
"For example, new listings in the past four weeks are only 4.5pc lower than the same period last year.
"But the number of sales reported by our members is 10.8pc higher."
"As a result, the number of homes currently on the market remains low."
Perth's median dwelling rent price rose to a new record of $590 per week in October.
This was a 1.7pc increase on September and 18pc higher than at the same time last year.
The median weekly rents for houses and units were stable at $600 and $550 per week respectively.
According to reiwa.com, the suburbs that saw the most growth in their median rent price in October were North Perth (up 45pc to $675 per week), Claremont (up 44pc to $790), Leederville (up 39pc to $860), Kardinya (up 30pc to $700), and Floreat (up 22pc to $850).
There were 1719 properties available for rent on reiwa.com at the end of October, which was a 2.3pc increase on September and unchanged from October 2022.
Ms Hart said listings were likely to remain low for the remainder of the year.
"Supply remains the greatest challenge facing the market, particularly the rental market," she said.
"We welcomed recent government announcements addressing impediments to supply, such as the changes to planning approvals that aim to get homes out of the ground quicker, and the introduction of a dedicated Housing Supply Unit that will hopefully prevent a repeat of current circumstances in the future.
"But, while it's important to increase supply, we also need a legislative environment that supports investment.
"Our market relies heavily on investors.
"They supply about 85pc of properties in the private rental market.
"They can easily put their money elsewhere - and they will.
"We saw the negative effects of legislation changes after the COVID moratorium was lifted. Investors voted with their feet and left the market in droves.
"While the WA Government has ruled out rent caps and rent freezes, investors are tentatively waiting on the outcomes of the Residential Tenancies Act reforms."
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