As 2014 comes to an end, the West Australian property market and economic growth on the west coast are starting to slightly soften. Alas, 2014 has been a strong year for property growth in WA and 2015 is also looking promising.
While this year has been characterised by the implementation of a tough government budget, the Reserve Bank of Australia has left the official cash rate on hold for the entire year (16 months in total) meaning record low interest rates have been available to Australian consumers. In doing this the RBA hoped to boost the Australian economy and statistics show that their decision has done just that for WA.
As of the 8th December WA remained the strongest residential building market in Australia. Home renovations accross the state are also at an all time high since 2012, having increased 147% since 2010. Lenders have been and are still offering excellent deals on finance, especially house and land packages.
The availability of such competitive interest rates means that now is a great time for home owners to review and refinance their mortgage to save money on repayments. According to the Australian Bureau of Statistics, on average about 20,000 existing mortgages are refinanced each month accross the country.
Whilst overall 2014 has been a great time for buying property, one group of individuals who have somewhat struggled are First Home Buyers. First Home Buyers accross Australia represent a decreasing share of the market, however WA First Home Buyers seem to be the most advantaged.
The Adelaide Bank/REIWA Housing Affordability Report for the September quarter reveals that WA is the state with the largest population of First Home Buyers, who now comprise 20.7% of the Westen Australian owner-occupier market. On top of this WA totalled 25.1% of all Australian First Home Buyer purchased recorded.
The report also saw WA stand out with the greatest improvement in terms of the proportion of income required to meet loan repayments.
Suburb Hot Spots in 2014
So, overall the WA property market has performed well throughout 2014... but which suburbs have helped WA acheive such performance?
- According to REIWA the suburbs with the highest number of transactions were the City of Stirling, Fremantle, Vincent, Melville and Kwinana;
- Busselton ranks as the market leader in regional WA;
- The most renovated suburbs were Mount Lawley/Inglewood, West Leederville and South Perth/Kensington; and,
- WA stood out in RP Data's Top 10 Highest Yielding Suburbs with 6 suburbs from the state making the list - Newman, Kambalda East, South Hedland, Port Hedland, Kambalda West and Baynton.
As mentioned above now is a great time to review your mortgage to see if you can save money on repayments and take advantage of a better interest rate. Please do not hesitate to contact Iconic Home Loans in the New Year for an obligation free mortgage review appointment - 1300 663 943
We would like to wish you all a Merry Christmas, and all the best for 2015.
Please be aware that the information contained in this article is general information only, and should not be used to base any decisions relating to your personal finance on. Before making any decision relating to your personal finances you should seek proper financial advice.