Developer of house and land packages in Pearsall and other Perth suburbs reveals what the recent property update means to first home buyers.
The Real Estate Institute of Western Australia (REIWA) recently released their latest statistics regarding the Perth property market. They concluded that the market is beginning to look better for first home buyers, citing more activity in that demographic, while other segments have either declined or stagnated.
By the Numbers
For the June quarter, sales in WA decreased by 6%. According to estimates by Landgate, 11,900 transactions involving dwellings took place. This continues a slight downward trend that began in March 2013. The June quarter saw transactions that were 5% less than the historical average over 15 years in Perth. In regional WA, the June quarter lagged 22% behind the 15-year average.
Current numbers for “stock”, or homes on the market, are 10,872 properties for a rise of 8%. Land blocks for sale increased to 1,449 for an increase of 12%. Since last year, listings have increased nearly 25%.
The more targeted data show that sales decreased the most in the area within 10 km of the CBD, falling 6%. Many of these homes are in the $500,000-$900,000 range, causing a drop in the median sale price from $550,000 to $545,000.
Sales were down 31% in South Perth and Victoria Park. In outer suburbs, prices rose 1-2% for most areas, with Canning seeing a 4% rise. Meanwhile, sales in Joondalup and the southern part of Wanneroo decreased by 4%.
Days on the market only rose one day, from 56 days to 57 days.
What the Numbers May Mean for First Home Buyers in Perth
The numbers indicate that the housing market is falling a very small amount in some areas, rising a very small amount in others, and remaining stagnant in a few. David Airey, President of REIWA, feels that the rise in first home buyer activity is partially due to changes in the transfer stamp duty.
The WA Government reduced the threshold for stamp duty exemption from $500,000 to $430,000 on 1 July. This could have resulted in buyers of homes that cost over $430,000 hurrying to beat the deadline.
Madeleine McErlain, Marketing Manager for 4Land Property Group, a Perth property developer, believes that the market is currently favourable to first home buyers:
“We are encouraged by the increase in first home buyer activity. The market seems to be giving first home buyers a welcome respite from constant price increases. We are also encouraged that prices are falling slightly or remaining relatively stable while interest rates are still low. The market is helping first home buyers.”
Ms McErlain concluded, “First home buyers should consider buying new homes because land blocks are well below the stamp duty threshold and the First Home Owners Grant will provide them with $10,000. Now seems to be a great time to at least explore their options.”