Perth is still the most affordable capital city in Australia to buy a house

As many in Perth are enjoying life relatively normally & looking forward to a summer of continued freedom (hopefully), the housing market is hot!

Many potential homebuyers are realising that the main issue is just how quickly properties are being snapped up.  They will be looking at a property and asking about a property and it's under offer within the day.

Overall supply is declining at a time when buyer demand is strong which has helped push down the total supply in the market.

Nicola Powell, research and economics chief at real estate listing site Domain, said demand was booming across the city, with sales reaching their highest for this time of year since 2014.

"The recovery was already there for Perth prior to the pandemic, so we were already starting to see a turnaround in growth.  We have seen a turnaround in interstate migration, we've also got the return of expats, and I think there is still perceived value in the market of Perth.  If we continue to see the rate of quarterly growth that we have been recording, we are likely to see house prices reach a new peak in early 2022," Dr Powell said.

A number of factors are contributing to the strong price growth seen and expected to continue into next year.

WA is still the most affordable state in the country when comparing income to median house prices. The April 2021 Perth median house sale price was $495,000, which was still down from the peak of $550,000 in 2014.

“We hit the bottom of the market around June last year following the COVID-19 lockdown and since then consumer confidence has returned. Buyers who were waiting for the bottom to hit are now eager to get into the market and take advantage of the record low interest rates.

"There is also a fundamental imbalance between supply and demand in the sales market right now, with more buyers looking for property than there are houses listed for sale. Buyers must act quickly and in competition with one another to secure a property, which is driving up house prices.

“When you factor all these components in, it is a perfect storm for higher-than-expected house price growth this year. We need to get more homes and apartments built. Until we see supply catch up with demand, we will see prices continue to rise," Mr Collins said.

Sources:

https://reiwa.com.au/about-us/news/wa-house-prices-tipped-to-increase-15-per-cent-in-2021/

https://www.abc.net.au/news/2021-07-30/perth-most-affordable-capital-city-to-buy-house-reiwa-data-shows/100335386

Perth rents are also at a six-year high and have recorded the strongest annual growth of all Australian capital cities during the June quarter, according to a new report.

The city’s house rents experienced their fastest rate of growth in almost 14 years, with a 21.6 per cent annual rise to $450 per week – an $80 increase – according to the latest Domain Rent Report released in July.

Domain chief of research and economics Nicola Powell said house rents remained $40 lower than their peak of mid-2013 but, if they continued to grow at the same rate, could surpass it by the end of the calendar year.

"Perth house and unit rents have now hit a six-year high following four consecutive quarters of rising rents,” Dr Powell said.

https://www.domain.com.au/news/perth-rents-at-a-six-year-high-report-shows-1070374/