Home ownership still achievable for West Australians

The latest Real Estate Institute of Australia's Housing Affordability Report, has revealed that housing affordability across the nation has declined except for WA, with the proportion of income required to meet loan repayments improving to 22.4 per cent.

It is pleasing to see that our state is once again the most affordable to live in across the country for a second quarter in a row, which provides some of the best buying conditions WA has seen in a very long time.

Perth property market appears to have stabilised

For those who are looking to buy, at the moment, WA has a steady median price of $486,000.

If you compare this to the east coast property markets like New South Wales or Victoria which has a median price of $790,000 and $626,700 respectively, here in WA, home ownership is still very much attainable.

In fact, the report revealed that average loan amounts have increased across all states and territories, with WA showing a 4.9 per cent increase over the quarter to an average loan size of $337,149.

To put this into perspective, the average in NSW increased is $481,169, making it the largest across the country.

Considering the decrease in sales activity over the quarter, it is a positive sign to see the number of first home buyers in the state increase by 4.8 per cent to over 3,470.

While West Aussies account for 13.2 per cent of first home buyers in Australia, NSW still leads, contributing 25.6 per cent of first home buyers.

Rental affordability has improved

From a rental affordability perspective, the nation saw an improvement during the June 2019 quarter to the lowest proportion of income required to meet rent payments since June 2008.

In WA it has decreased marginally to 16.45 per cent - a 1.5 per cent improvement compared to the June 2018 quarter.

If you compare this to NSW, the proportion of family income needed to meet rent payments has stayed between 28 - 29 per cent or in VIC which sat at 23 per cent for the year to June 2019.

For those looking for their next rental property, it certainly is a good time to do your research to find the ideal property that suits your lifestyle preferences.

Now is the time to buy

While the dream of home ownership remains a challenge on the east coast, it's very much alive and well in WA, with the property market currently favouring buyers and tenants.

Now is the time to take advantage of favourable conditions to secure their home before our local WA market becomes less affordable.

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