Are things finally looking up for the WA property market?

Are things finally looking up for the WA property market?

Recent sales statistics suggest that Perth’s property market is showing signs of improving.

According to the Winter PPI (Price Predictor Index) released by www.hotsoptting.com.au, Perth currently has more than a dozen growth areas with consistent sales. The report says that, considering 6 months ago Perth had no growth areas, this is an extremely positive sign and the best result for Perth since mid-2015.

WA Government Support

The WA government has expressed that it anticipates the state’s 5-year property downturn is about to end, blaming the downturn on an oversupply of housing between 2013-2016.

The recent release of the 2017/18 WA State Budget shows that the McGeown government has listened to the concerns of the WA property industry by choosing not to increase property taxes.

In relation to the WA economy, the McGowan Labor Government explained that in the State Budget it is delivering a jobs focused agenda, with responsible financial management and budget repair that is, helping build confidence in the WA economy.

The State's economy is expected to have bottomed in 2016-17 and is now showing signs of recovery. Economic growth is forecast to pick up to 3% in 2017-18 up from just 0.25% in 2016-17. This is underpinned by strong growth in net exports.

The economic outlook outlined within the budget states that:

  • WA’s transition from mining construction to production is almost complete;
  • Increased labour demand is set to drive a return to employment growth; and,
  • NET exports are forecast to remain the largest driver of economic growth for the next 2 years.

The Property Council of WA

The Property Council of WA have expressed that they agree that Perth is starting to emerge from its sixth downturn in 30 years in relation to sales transaction rates. Further to this they have acknowledged that recovery for the WA market is heavily dependent on a slowdown in new supply, a gradual recovery in population growth and an improving labour market.

Changes in Dwelling Values

Statistics on the annual and quarterly change in dwelling values in Perth released in the CoreLogic National Housing Update for September 2017 further indicate that the market is showing signs of improving.

  • The annual change in dwelling values for Perth, WA to August 2017 was -2.8%;
  • The quarterly change in dwelling values for Perth, WA to August 2017 was -1.6%; and,
  • The monthly change in dwelling values for Perth, WA for August 2017 was -0.8%.

Highest Growth Suburbs

According to data released by www.reiwa.com.au the top 10 highest growth suburbs in Perth as at the 5th of September 2017 were:

  1. Cottesloe;
  2. Attadale;
  3. Salter Point;
  4. Lower King;
  5. Wanganui;
  6. Coogee;
  7. Yakamia;
  8. Woodlands;
  9. Perth; and,
  10. North Beach

Interest Rates

The Reserve Bank of Australia (RBA) released their decision at the start of the month to leave the cash rate on hold at 1.5% for September 2017, making it the 13th consecutive month that the RBA has left the cash rate unchanged.

The RBA last cut the cash rate to 1.5% in August 2016 following an earlier cut to 1.75% in May 2016.

Tim Lawless, head of research at CoreLogic, expressed that the likelihood of a cash rate hike in the remainder of 2017 is highly unlikely given that growth conditions across the housing sector are moving back to a more sustainable level of growth.

the Perfect Time for a Home Loan Health Check

With interest rates at an all-time low and the WA property market showing signs of improving, now is an opportune time to review your financial solutions and ensure that you continue to use a product and interest rate that suited to your everchanging needs.

Having an iconic home loans broker review your mortgage with you will help you to determine whether you are currently able to:

  1. Save money on interest and repayments;
  2. Change to a shorter loan term;
  3. Access better loan features;
  4. Access home equity; or,
  5. Consolidate other debts.

To find out more about the potential benfits assostiated with reviewing your mortgage please click here.

A MORTGAGE review appointment does not cost you ANYTHING and could POTENTIALLY save you thousands

To book a review appointment with one of our brokers please click here to send us an email with your details.

Alternatively you can contact your broker directly or contact our head offices on 1300 663 943.

 We look forward to continuing to assist you in managing your financial solutions throughout the remainder of 2017.

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* DISCLAIMER: all information provided here is general only and your personal circumstances have not been taken into consideration during its preparation. You should seek independent advice prior to making any decisions in relation to your personal financial situation. Finance/refinance availability is subject to the applicant/s satisfying the lenders approval criteria and all approvals are at the discretion of the lender.