"Green shoots" appear in Perth's property market

Font size :

It was the first property market bubble to burst, and now Western Australia may be the first to show significant recovery signs.

Perth's median house price has jumped by $10,000 since December last year, lifting the current median to $430,000, according to the Real Estate Institute of Western Australia (REIWA).

While the government incentives dished out to first homebuyers have inflated some lower end prices, REIWA President Rob Druitt says there was more to it than just the grants.

"While the federal government's First Homebuyer Boost has been a major reason behind this renewed activity, there is also evidence that trade-up buyers are returning to the market," he said.

Druitt says that while other states in Australia might be still stuck in a bit of a lull, it's important to remember Perth has been in its slump longer, and running on a different schedule the rest of the country's property market.

One of the most important indicators to be optimistic, he says, is the drop in stock level. From a height of 18,000 properties in Perth for sale in 2008, it's dropped to 15,000 in the March quarter, and then down to 14,300 in April. The long term average is 12,000.

"We're tracking in the right direction," he says. "It's narrowing the gap between buyers and sellers."

Druitt says the excess build up by speculators during the boom is likely to evaporate later this year, possibly triggering more construction.

But he added the winter season has traditionally been "very quiet" for the housing sector.

 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Sep 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords