Perth real estate market struggling with slow sales

The Perth real estate market has had a challenging year with slow sales and properties taking about three months to get sold.

President of the Real Estate Institute of Australia, David Airey, says the challenges this year were too much properties that were considered overpriced. "While the market's been adjusting down, as buyers keep making offers - under-asking prices and sellers adjust those prices. That's been the biggest challenge for agencies to try to gear to sellers to meet the market," Airey told Eoin Cameron on the 720 ABC Perth breakfast show.

The dismal market show signs of improving. "In the last three or four weeks in particular there's been quite a spurt on, and noticeably at the upper-end of the market, Eoin there's been quite a few sales at higher figures than we've been expecting." Usually it takes two to three months of waiting before sellers are willing to adjust and lower prices.

Perth is not alone in dealing with real estate woes. The Queensland market is also slowing down with an estimated 70,000 properties on sale with most of the properties located in the Gold Coast. Melbourne reported the best real estate figures for 2010 with auctions increasing every weekend.

"The three main drivers of real estate sales is the three D's: death, divorce and debt. And when those things happen, they do drive people to sell - all the other people have a choice," he added.