First home buyer activity appears to be impacting strongly on Perth’s housing market, according to new data.
The Real Estate Institute of Western Australia’s (REIWA) latest figures for the three months to August reveal a drop in the median house price of 1.4 per cent to $515,000, compared with the three months to May figure.
REIWA president David Airey said this was due to the large turnover of more affordable homes skewing the median downwards.
“Based on early figures, there were around 2,076 houses that sold during the month of August, which is up by four per cent on July but down by 14 per cent on three months ago,” Mr Airey said.
“The central sub-region, which takes in those suburbs that are roughly within 10 kilometres of the CBD and tend to have stock at or above the median price, saw a solid six per cent increase in reported sales, with Bayswater-Bassendean in particular seeing a jump of 21 per cent in turnover.
“The strongest turnover, however, was reported in the north west and southern parts of the City of Wanneroo - between 31 and 36 per cent - but in the adjoining City of Joondalup sales slumped by up to 20 per cent."
There was also increased turnover in Kwinana and Rockingham, with more affordable properties,” Mr Airey said.
At the end of August, REIWA recorded 9,237 properties on the market, up by five per cent on July and trending upwards.
However, over the last three months, the number of blocks of land for sale fell by 18 per cent to 1,303 listings.
A recent report by Urban Development Institute of Australia (WA Division) has revealed applications for the First Home Owner Grant (FHOG) have increased throughout 2013.
Over 5,000 FHOG applications were increased over the last 12 months to July, compared to a year earlier and nearly twice as many applicants as two years ago.
The number of grant applications for new homes was 6,839 over the 12 months to July, representing a rise of 54 per cent compared to a 22 per cent increase in grant applications for established dwellings.