Affordability’s improving in Perth

Affordability’s improving in Perth

Posted on Friday, December 04 2015 at 4:23 PM

Housing affordability has further improved in Perth according to the Real Estate Institute of Western Australia (REIWA), with the latest preliminary data showing that Perth’s median house price is at $535,000 for the three months to November 30.

REIWA president
Hayden Groves says the median house price was consistent with the Real Estate
Institute of Australia/Adelaide Bank Housing
Affordability Report, released yesterday, which showed that housing
affordability in WA had improved across the September quarter and also the
year, with the proportion of income required to meet loan repayments now at
23.8 per cent.

“Perth hasn’t
been this affordable for homebuyers for several years, with our latest
preliminary data for the three months to November 30 showing that 42 per cent
of sellers are adjusting their selling price in order to sell.

“Further analysis
also shows us that the most significant adjustments across price ranges in the
Perth metro area for the rolling three months to November 2015 is happening in
the $360,000 to $500,000 range, which is traditionally the first homebuyer
market, and in the over-$725,000 range, which is consistent with what REIWA
members have reported in the current market,” Groves says.

The official
abolishment of the First Home Owner Grant (FHOG) for established homes in
October has predictably had a direct impact on sales volumes for the three
months to November, which came in at 1,768 – a drop of 13 per cent over the
last three months.

The total number
of listings for sale in Perth as at November 30 came in at 16,475, but peaked
during the month of November at 17,078.

“This is up 18
per cent over the three months to November and up 23 per cent on the year to
November 2014 but the recent fall in listings could indicate that listing
levels have peaked,” Groves says.

Rental market

Rental
affordability in Perth has continued to improve over the last three months too,
with the latest reiwa.com data showing rents at more affordable levels.

“The overall
median rent price for the three months to November 30 now sits at $395 per
week, a minor adjustment of $5 over the last month but a significant $45 on the
same time last year,” Groves says.

The median house
rent is now $400 per week, while rent prices for units sit at $375 per week.

“These current
weekly rent prices are also consistent with the results of the Housing Affordability Report, which
found that rental affordability in WA had improved in the September quarter,
with tenants now spending around 21.5 per cent of their income on rent,” Groves
says.

Rental listings
in the Perth metro area have increased 16 per cent over the last three months,
to 9,448, providing tenants ample choice.

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