Perth housing most affordable in 13 years
Housing affordability has further improved in Perth with the latest preliminary reiwa.com data showing that Perth’s median house price is at $535,000 for the three months to 30 November.
REIWA President Hayden Groves said 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 home buyers 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 home buyer market, and in the over $725,000 range, which is consistent with what REIWA members have reported in the current market
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 1768 – a drop of 13 per cent over the last three months. The total number of listings for sale in Perth as at 30 November 2015 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," Mr Groves said.
Rental affordability in Perth has continued to improve over the last three months, with the latest reiwa.com data showing rents at more affordable levels. “The overall median rent price for the three months to 30 November now sits at $395 per week, a minor adjustment of five dollars over the last month but a significant $45 on the same time last year,” Mr Groves said. The median house rent is now at $400 per week, while rent prices for units sit at $375 per week. “This 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 tenant’s now spending around 21.5 per cent of their income on rent,” Mr Groves said. Rental listings in the Perth metro area have increased 16 per cent over the last three months, to 9,448 as at 30 November, providing tenants ample choice for quality accommodation in and around the metro area.