In 2009, almost ten years ago, the median house price in Perth was sitting at around $500,000. Today, it’s virtually at the same level!
At the same time, over this nine-year period, average full time weekly earnings in Western Australia have jumped by nearly $400 per week to $1,821.50.
Our cities overall, wages growth has been higher than many other parts of Australia, including New South Wales where average full time weekly earnings rose by around $200 to $1,642 over past nine years.
This lower rate of wages growth has now put a break on the massive surge in Sydney house prices with the median house price in that city now in reverse after peaking at $1 million last year.
In contrast, Perth property buyers have the financial capacity to buy property more easily in Perth today compared to nine years ago, due to rising wage levels and the fact that official interest rates over this period have nearly halved from 3.5% to 1.5%.
Not only do buyers have the financial capacity to by homes in Perth compared to 9 years ago, they also have the capacity to buy a better home today than they could back in 2009.
That is why Peard is seeing first home buyers in Perth now buying in inner city areas today, which would have been unheard of back in 2009.
Perth is now one of the most affordable capital cities to buy a home either by an owner occupier or investor, and with more confidence returning to the jobs market in WA over recent months, we’re predicting a high rate of housing affordability in Perth will result in an uplift in housing sales over the coming year.
Peard Real Estate CEO, Peter Peard, says once the excess supply of homes on the market are absorbed, we should see an upward pressure on property prices throughout Perth during 2019.
“This trend is already being experienced in the near city areas of Perth where Peard is recording price growth rates in areas where there an undersupply of established family homes in high demand areas.
“That is why 2018 remains the last opportunity for buyers to lock in rock bottom prices that currently exist in many areas of the market," he said.
With predictions that prices will not fall any further, smart first home buyers, as well as upgraders, are now taking advantage of these very affordable prices to buy a property now rather than waiting until next year when prices are likely to rise.