An influx of first home buyers is being touted as the start of a resurgence for the housing market.
Figures from the WA Treasury show a 15 per cent increase in first home-buyer activity in March.
Debra Goostrey from the Urban Development Institute of Australia says the number of people applying for the State Government's first home buyer grants has increased by 35 per cent over the past year.
She says it is the highest it has been since the grant was temporarily boosted three years ago.
"Rents go up, first homebuyers look at the sums and say now is the time to buy, and then we see the whole market starting to move," Ms Goostrey said.
"It's only happening slowly at the moment but it is the first sign that we are really starting to move into the upward swing of the cycle."
The market is certainly starting to gain some momentum over here in the West.
Coupled with sales in general for established houses up 30% so far in 2012 and land sales up 17.5% we could soon see a shift in home construction to higher levels which in time will help ease the rental squeez but not for some time.
As this trend continues over the comming months we should see the housing stock in perth decline further from being just under 14,000 houses to under 13,000, by spring we could reach a situation where housing stock is below long term averages which would lead to solid price rises. In fact we are already at average housing stock levels for Perth when you consider the large increase in population to housing stock.
Coupled with sales in general for established houses up 30% so far in 2012 and land sales up 17.5% we could soon see a shift in home construction to higher levels which in time will help ease the rental squeez but not for some time.
As this trend continues over the comming months we should see the housing stock in perth decline further from being just under 14,000 houses to under 13,000, by spring we could reach a situation where housing stock is below long term averages which would lead to solid price rises. In fact we are already at average housing stock levels for Perth when you consider the large increase in population to housing stock.
Is applied for the same as granted?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
The market is certainly starting to gain some momentum over here in the West.
This cannot be. Panties told us that Q3 2011 was the tipping point, so you must have started gaining momentum last year already.
This must be that new up-cycle he keeps banging on about....
Well Panties, who ever that is would be correct. Landgate clearly shows Perth Median houses price bottomed out in September 2011 and Median prices have been increasing ever since. It will be interesting once full data is released for March quater. If you look at Febuary although still incomplete the number of sales counted is large and the Median price is $495,000 which is a $30,000 increase in median values from September. If this figure remains it means Perth Median house prices will have increased in value by 6.45% in 6 months or an annualised rate of 12.9%, very solid growth figures if it continues. With the large rental crisis here in perth, this kind of growth is possible although unlikely. I would expect to see yearly growthin in the 7-9% for 2012.
The key figures to watch are First Home Buyer activity, at present sales levels are similar to the last time the Government doubled the grant in 2009 which lead to a mini boom in house prices. The question is, if the current Rental Crisis having a similar affect on the market.
Well Panties, who ever that is would be correct. Landgate clearly shows Perth Median houses price bottomed out in September 2011 and Median prices have been increasing ever since. It will be interesting once full data is released for March quater. If you look at Febuary although still incomplete the number of sales counted is large and the Median price is $495,000 which is a $30,000 increase in median values from September. If this figure remains it means Perth Median house prices will have increased in value by 6.45% in 6 months or an annualised rate of 12.9%, very solid growth figures if it continues. With the large rental crisis here in perth, this kind of growth is possible although unlikely. I would expect to see yearly growthin in the 7-9% for 2012.
The key figures to watch are First Home Buyer activity, at present sales levels are similar to the last time the Government doubled the grant in 2009 which lead to a mini boom in house prices. The question is, if the current Rental Crisis having a similar affect on the market.
FYI Mike. RIEWA \ Landgate numbers are not seasonally adjusted. They would need to rise 25% to reach the level of the depressed mid correction March quarter numbers from 2011. Want a link? I notice you rarely post with one.
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