Housing Prices in Perth are in Favor of First Home Buyers
Despite of stricter lending standards by Australian banks, weak property prices are of great help for first home buyers in Perth, helping them to own a home.
As in Perth the median house price fell down to $585,369. According to Domain Group’s December House Price report, “The price is the lowest since 2013, and it got a dip of 4.5%, if compared with last year data”.
Stricter lending rules by banks have lead to less borrowing capacity of borrowers. A person can borrow $100,000 less amount than he/she can borrow last year.
Real Estate Institute of Western Australia president Hayden Groves said,”A flurry of buyers had entered the market before the first buyers’ home grant was cut in October, and the top five selling suburbs of 2015 were all in first home buyers’ territory”.
According to the ABS data there were17,711 first home loans approved in 2015, as compared to 20,357 in the year 2014.
At this Mr. Groves said, “It was not all doom and gloom for first home buyers in 2016. Affordability in Perth is the best it has been in more than a decade”.