Research shows market on a rise
Real Estate Institute of WA research has revealed the City of Busselton was one of the few regional housing markets to record an increase in value last financial year.
The research would be welcome news for property owners, but could be a worry for potential first homebuyers according to Vasse MLA Libby Mettam.
BGC Housing Group executive general manager Michael Bartier said the data suggested it could be in first homebuyers best interests to build.
The median sale price for established properties in Busselton grew by 11.2 per cent in the June quarter alone.
The data shows the amount of leases signed in Busselton also grew in the June quarter.
REIWA president Damian Collins said there had been a significant decline in vacancy rates over the last few years, with the average rental price in the region around $400 per week.
The Federal Reserve Bank left interest rates at an all-time low of one per cent last week to continue to stimulate the housing market.
Ms Mettam said the growing value of housing in the region was positive and showed a demand for the South West lifestyle.
However, she said the growth in the market suggested it was becoming increasingly difficult for first home buyers.
REIWA’s researchshowed first home owner applications fell by more than 28 per cent from March 2017 to July 2019, which Ms Mettam blamed on the McGowan Government reducing the first-homeowners grant.
Premier Mark McGowan said although the grant was lowered to $10,000, the WAGovernment had initiated changes to the Keystart program.
Keystart is a WA Government-owned mortgage lender, helping home buyers who meet certain criteria buy property in WA.
Keystart’s income limits have been increased by $15,000 for singles and couples, and by $20,000 for families until December 31, 2019.
“Keystart is one of WA’s great success stories in housing affordability and it helps people become home owners where otherwise it might not be possible,” Mr McGowan said.
Mr Bartier said with median established property prices increasing in the South West, the smartest move was to build a new home.
“This is the best time in the property cycle to build a new home.”
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