Perth property is more affordable than it has been at any time in the past decade, the Housing Industry Association says.
The HIA said rising wages and falling interest rates have helped offset increasing house prices, making properties as affordable now as they were 10 years ago when they cost about half as much.
The association's affordability index for Perth property is at 69.1 per cent - the best since December 2003 when it was 70 per cent.
It may be surprising given the median price for a WA dwelling is $575,000, more than twice the December 2003 median cost of about $271,000.
HIA chief economist Harley Dale said interest rate cuts helped offset the higher house costs, with a fall from 6.8 per cent on variable loans a decade ago to 5.35 per cent in the last quarter.
The rate changes have had a favourable impact on mortgage payments, which average $3128 a month compared with $1441 a decade ago. Mr Dale said homeowners were better able to service bigger mortgages because WA's average weekly wage was $1662, compared with $926 a decade ago.
The HIA research shows the most unaffordable time in the past decade was early in the boom year of 2007, when the index hit a low of 41.1 per cent.
Perth property is more affordable than it has been at any time in the past decade, the Housing Industry Association says.
The HIA said rising wages and falling interest rates have helped offset increasing house prices, making properties as affordable now as they were 10 years ago when they cost about half as much.
The association's affordability index for Perth property is at 69.1 per cent - the best since December 2003 when it was 70 per cent.
It may be surprising given the median price for a WA dwelling is $575,000, more than twice the December 2003 median cost of about $271,000.
HIA chief economist Harley Dale said interest rate cuts helped offset the higher house costs, with a fall from 6.8 per cent on variable loans a decade ago to 5.35 per cent in the last quarter.
The rate changes have had a favourable impact on mortgage payments, which average $3128 a month compared with $1441 a decade ago. Mr Dale said homeowners were better able to service bigger mortgages because WA's average weekly wage was $1662, compared with $926 a decade ago.
The HIA research shows the most unaffordable time in the past decade was early in the boom year of 2007, when the index hit a low of 41.1 per cent.
I usually just read the forum for interesting links etc, and avoid the threads that become 20 pages of arguments.
But I had to post on this one.
Black Panther - doesn't this link completely contradict your other post, the one talking about transmutations?
If you consider that rents have skyrocketed, Prices remain high, and that lending rates are low, then it appears the market is primed for PI to take a bigger chunk of the market.
Under $600k properties are being snapped up quickly..
Some buyers are buying apartments, I've never liked multistorey types, the growth rate is not as efficient as houses.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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