Friday, February 18, 2011

REIWA now Hiding Data on Days Listed & Discounts

REIWA Hiding Data on Days Listed & Discounts

REIWA & Property Spruikers are getting D*E*S*P*E*R*A*T*E ...

Melbourne Cup Rate rises are starting to kick in ... REWIA listings are back over 16,592,  .....

But look closer at the Real Facts Data on the front page of REIWA web site .... Notice Anything??? ...

REIWA has now removed the info about the Number of Days a Property is Listed on the market before it sells & they have also Removed the info on Discount off listing price given to achieve a sale?.....

You have to wonder WHY??? ...

Because the numbers show the true state of what the property market is actually doing .....

This data gives buyers a useful guide to how the property market is actually performing.

REIWA has always  also published this info on their Website &  in both Community Newspapers & Saturdays West Australian (Click on Image below to enlarge)

The numbers have always been there for buyers to make informed decisions.

But because this information now paints a bleak picture of the Perth Property market REWIA has chosen to remove info on & keep the bad news that the property market is in distress & falling from  potential buyers.

have a look at the image above
1) Number of Days a typical property is listed before selling. *
2) Average discounts off original listing price given to attract a sale.*

(* These numbers can be corrupted by our Unscrupulous Realty Industry see how they do this further down) 

REWIA have replaced this with Rental info instead (Vacancy Rate & Median Rents)

People dont want or need rental info ... But REWIA dont want you to know the true state of the market.

When markets were booming they rejoiced in publishing this data (24 Days on Market before selling or 1% discount on listed prices) but now they seek to hide this from buyers to try & pull the wool over their eyes.

Earlier I mentioned the realty industry corrupts the date they put out for Days on Market & Average Discounts.

*Last reported number by REWIA were on the 2nd Feb 2011 they were 
71 Days on Market (Actual number reported by Realty insiders is over 100 days)
6.3% Discount on Listed price (Actual number reported by Realty insiders is closes to 11%)

This is How REIWA hide the real numbers  
If I list a property with Agent "A" for $1 million on the 1st Jan.2010  It stays on the market, it has many home opens but no offers & Time flies by.
It is now March 1st & Agent "A" suggests we drop the price to meet the market & we reduce it to $950K for a further 6 weeks to see how many fish we catch. But still no nibbles.

Vendors think Agent "A" might be the problem so don't renew our listing with them but shop around for a different agent.

4 days pass it is now 11th April 2010 & the Vendors give the listing to Agent "B" who suggests that they might have missed the boat by listing too high in the first time & not to make the same mistake again.

He informs the Vendors that  the market has turned softer in the last 3-4 months & suggests they list at $899K to pull in some offers / buyers .....

4 weeks pass & Vendors hit pay dirt & attract a offer for $875K on the 11th May 2010.

So what do you think REWIA should  record as Number of Days listed & Discount on Asking price?

A) Listed for 131 Days before selling @ A Discount on asking price of 12.5% to attract a sale.

B) Listed for 30 days before selling @ A Discount on asking price of 2.6% to attract a sale.

The above example is quite common in todays market but the stats are vastly different :

131 days Vs 30 Days
12.5% Discount Vs 2.6% Discount

I think the answer should be  A) it did take 131 days & a 12.5% discount off asking prices to achieve a sale & this is what should be reported? because quite clearly this is what has happened?.

No REWIA say B) because the second listing is a fresh listing & everything should be measured from this point?

Now listings are back up to a Unbelieviable 16,592 listings & Climbing ....The Shadow Inventory adds a further 5,000 listings to this number making the number of listings for sale to over 21,600 & with Perth sales running at under 18,000 pa {Based on last 6 months sales} This leaves Perth with over 14 months stock... A normal market is under 4.5 months stock to sales at the Peak in 2006 this number was under 3.3 months ..... No wonder Land developers have started Slashing Land Prices also with discounts from $20K - $80K hidden as bonuses & rebates Very Sly ?? Why hide pricing?


  1. Really enjoy the posts on perthnow site refreshing to read comments from someone that doesn't think that somehow the WA housing market is different from all others around the globe ie house prices only go up.My family and I arrived here from Northern Ireland last year and have been struck by the unremitting real estate propaganda on offer in the news media-not to mention advertising that would be viewed as extremely questionable in the UK promising new train stations and freeway extensions at the doorstep of your new dream house.On a personal note we sold our home in northern Ireland before moving out to WA (After having to reduce it by 33%) can still remember our very postive and professional estate agent calling out to see us to discuss dropping the price yet again-then explaining that as the market had tanked he was getting sacked. We heard all the same thing in NI prior to the bubble bursting;mass migration from eastern europe, no housing stock etc etc get ready for the boom-kind regards steve, sarah & christian

  2. Thanks for this great blog and thanks Steven for your view - awesome stuff - the time has come.