The 0.25 percentage points interest rate rise is unlikely to derail the WA established homes ma
“While this is unwelcome news for mortgage holders, interest rates are only one factor that affect a property market and WA’s market is being supported by a range of factors, including population growth, a strong economy and low unemployment,” she said.
“Population growth is naturally boosting the demand for property, while the other factors support the ability to buy property.
“And while demand has seen property prices rise this year, WA remains one of the most affordable places to buy in the country. Our comparably affordable house prices, higher than average incomes and lower than average mortgages, mean it is easier for people to buy and service a mortgage here, despite interest rate rises”.
Ms Hart said the appetite for established property was likely to continue, with indicators suggesting WA’s population was still showing strong growth.
“Our growing population needs somewhere to live, and people are turning to the established homes market for the solution,” she said.
“Unfortunately, we can’t expect any immediate relief from the building industry or rental market.
“While the decline in number of properties in the rental market appears to have stabilised, it is not increasing. Local investors are still selling and although Eastern States investors are showing a lot of interest in our market, they seem to simply be replacing those who have left.
“Nor have building completions increased significantly. In the last three financial years WA has averaged 14,000 new dwellings per year. During that time the number of households has grown by about 60,000.
“The ongoing constraints in the rental market and building industry will continue to see people choose to buy rather than build or try finding a rental.”
Sourced from REIWA