This article is from the Australian Property Journal archive
THE home buyer market in Western Australia has collapsed, according to the Real Estate Institute of WA.
New First Home Owner Grant data from the Office of State Revenue show that there were just 988 first home buyers in April, down from 2,322 in April of last year.
REIWA president Alan Bourke said 728 first home buyers purchased an existing home, and 260 decided to build compared to 1,555 purchase of established homes and 767 built new ones in the same period last year.
He added that the effects of six interest rate rises and the collapse in first home buyer activity since January is now evident in all market indicators for Perth and Regional WA.
Bourke said the latest FHOG data for April coupled with reiwa.com sales and listings data confirm the softening trend across many markets.
“While FHOG applications for new dwellings have plummeted to just 260, this is in line with the typical long term level over much of the last ten years. The artificial boom of first time buyers triggered by the Commonwealth grant has now well and truly ended,” he declared.
Overall sales data indicates that sales activity fell by 15% in Perth during April, with preliminary data for May suggesting there has been no improvement.
Australian Property Journal
