“Perth is the most affordable city in Australia at present according to the latest HIA Affordability Index, which is great news for anyone looking to enter the housing market” commented John Gelavis, Executive Director WA.
The HIA Affordability Index is produced quarterly and measures the mortgage repayment burden as a proportion of typical earnings in each market. A higher index result signifies a more favourable affordability outcome.
“The HIA Housing Affordability Index saw another solid performance for Perth during the June 2018 quarter indicating that affordability in Perth continues to improve” commented Mr Gelavis.
“With house prices in Perth continuing their steady – even if prolonged – descent, the city has retained its newly-acquired mantle of the most affordable market. The housing affordability index for Perth registered 111.7 in the June 2018 quarter, indicating that mortgage repayments for homes at current market prices account for less than 30 per cent of average full time earnings” continued Mr Gelavis.
“Affordability in Perth is not only up over the quarter and the year, but also well up on its long-term levels. Massive resource booms in WA over the past two decades have had the economic side effect of rapid dwelling price growth, resulting in poor affordability. The latest level is a vast improvement on the long term” continued Mr Gelavis.
“We are seeing consumers looking to take advantage of the current market conditions of low interest rates, increased competition, faster build times and State Government stimulus for first home buyers such as the $10,000 first home owner grants and stamp duty exemptions” continued Mr Gelavis.
“Another critical factor in entering the market for the first time lies within the availability of the State Government Keystart program, which provides a low deposit arrangement and other options such as shared equity, which is one of the main reasons why Western Australia has the highest percentage of first home buyers in the nation” continued Mr Gelavis.
“These conditions continue to provide the opportunity for many to enter the housing and property market in Western Australia” concluded Mr Gelavis.
Source: HIA
