Housing affordability in Western Australia experienced a minor decline in the September quarter, but has improved over the year, according to the latest Housing Affordability Report by the Adelaide Bank and Real Estate Institute of Australia.
REIWA President Hayden Groves said the report showed that while the proportion of income required to meet loan repayments in WA had increased by a minor 0.2 percentage points in the September quarter, over the year the figure had declined by one per cent.
“This is a notable improvement over the year and good news for prospective home buyers looking to enter the market or find their next home. It’s a good time to buy and I would advise those looking to purchase a property to take advantage of the improved affordability before the market lifts again,” Mr Groves said.
reiwa.com’s latest data for the three months to November shows that the Perth median house price increased by 0.8 per cent to $530,000.
“This is the first time since August this year that we’ve seen an improvement in the median house price. This latest data, combined with the slight decline in affordability across the state in the September quarter, suggests that the worst may be over.
The Housing Affordability Report also revealed that Western Australia had the highest proportion of first home buyers in the owner-occupier market in the country. The average loan amount for this group increased by 1.3 per cent over the quarter, but had eased by 4.6 per cent compared to the September quarter 2015.
“It’s certainly more affordable for WA first home buyers to enter the market now than it was a year ago, however the increase over the quarter in the amount first home buyers needed to borrow for their mortgage indicates that house prices may be beginning to stabilise,” Mr Groves said.