Forty-nine per cent of sales were under $500,000 in February, indicating first home buyers are on the move.
The Real Estate Institute of Western Australia (REIWA) data shows almost half of all property transactions were below the $500,000 mark during the month of February.
REIWA President Damian Collins said while CoreLogic’s Home Value Index showed prices in Perth had declined 1.5 per cent to $438,952 in February, REIWA data shows the composition of sales favoured the lower end of the market.
“It’s a trend we’ve observed for the last three months,” Mr Collins said.
32 per cent of those sales were between $350-$500,000, while 17 per cent were below $349,000.
“Traditionally, when there is a greater proportion of activity occurring below $500,000, this indicates first home buyers are on the move,” Mr Collins said.
It follows calls from the REIWA to reintroduce the WA First Home Owner Grant, claiming it “unfairly penalises buyers wanting to purchase established properties by only providing assistance to those who choose to build”.
Mr Collins told WILLIAMS MEDIA it’s not fair that first home buyers are missing out on the grant simply because they don’t want to build a new home.
“Or even worse, it means some first home buyers who want an established property are unable to enter the market.
“Housing affordability remains a significant hurdle for many West Australians and we should be encouraging and incentivising all first home buyers to enter the market, not just those who choose to build their first home,” Mr Collins continued.
Mr Collins says the government should extend the grant towards eligible first home buyers who want to purchase an established residential dwelling.
Buyers upgrading need to act fast
Baldivis, Morley, Willetton, Canning Vale and Dianella were the top-selling suburbs.
While the biggest number of sales in February were within the first home buyer price range, the fastest selling suburbs were all from the higher end of the market.
“Most of these suburbs have median house prices above $600,000, which indicates buyers are needing to act quickly in Perth’s trade-up and luxury markets to ensure they secure the property,” Mr Collins said.
Credit: The real estate conversation