Perth housing at its most affordable in more than a decade

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Housing in Perth is at its most affordable in more than a decade according to the state’s peak real estate body.

Figures from the Real Estate Institute of Western Australia (REIWA) show that Perth’s median house price was $535,000 for the three-months to the end of November.

REIWA president Hayden Groves said that figure is in line with last week’s Real Estate Institute of Australia/Adelaide Bank Housing Affordability Report, which showed housing affordability levels in Perth are well above the national average.

According the report, the proportion of a median family income needed to meet average mortgage repayments in Perth is 23.8%, well below the national mark of 31.7%.

That figure puts Perth’s housing at its most affordable in 13 years.

“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% of sellers are adjusting their selling price in order to sell,” Groves said.
“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,” he said.

While affordability may have improved in the city, it doesn’t seem to have resulted in an influx of buyers.

According to the REIWA figures, 1,768 homes we sold in Perth in the three months to the end of November, a 13% decrease compared to sales figures over the previous three-month period.

Residential listings rose 18% over the November quarter and have increased 24% in the 12 months from November 2014.

In good news for tenants and bad news for landlords, rental affordability also improved over the quarter, with tenants needing only 21.5% of their income to go towards rent.

“The overall median rent price for the three months to 30 November 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 said.

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

Rental listings in Perth increased 16% to 9,448 in the three months to November.

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