Owning a home in WA still within reach, according to REIWA’s March data

Owning a home in WA still within reach, according to REIWA’s March data

THE dream of owning a home is well and truly in reach for those living in WA, according to the Real Estate Institute of WA.

REIWA president Hayden Groves said preliminary data for the March quarter showed concerns about housing affordability remained an east coast issue.

“While the dream of home ownership is becoming increasingly difficult in some parts of Australia, particularly in Sydney and Melbourne, this isn’t the case in Perth,” he said.

“First-home buyers remain active and continue to take advantage of improved affordability and choice in the market to secure a property that meets their needs.

“These factors, combined with record low interest rates, makes for positive buying conditions for those looking for a first home.”

REIWA’s preliminary data for the March quarter showed the bulk of sales occurred within the $400,000 to $450,000 price range.

More sales in the lower price brackets and fewer sales in the $700,000 to $1.5 million saw the preliminary Perth median house price fall to $505,000.

REIWA president Hayden Groves

However, once all transactions for the quarter were accounted for, the median was expected to rise to about $517,000, just below December’s quarterly median.

The preliminary median unit price was $411,750.

“Although there were more transactions occurring in the $350,000 to $450,000 price range, early indications suggest there was also a boost in volumes between $600,000 and $1 million, which has kept the unit median strong over the quarter,” Mr Groves said.

The preliminary total dwelling sales figure for WA was 6496 for the three months to March 2017, below the revised December quarter 2016 sales figure.

“Once all transactions for the March quarter have been recorded, we expect this figure to lift to approximately 8500, putting this quarter’s activity levels on par with the December 2016 quarterly figures,” Mr Groves said.

After a seasonal drop over the festive season, listings for sale increased over the quarter to 14,845.

Mr Groves said the level of stock was well controlled; the March quarter figure was similar to the levels experienced in the latter half of last year and 2.7 per cent lower than the 2016 March quarter result.

On average, it took vendors 70 days to sell their property in the three months to March.

The proportion of vendors needing to discount their asking price held steady at 55 per cent, however the average discount fell from 7 per cent in the December quarter to 6.4 per cent.