prowest The “BEST time to Buy in Perth since 2013”
The latest REIWA Curtin Buy-Rent Index for the March 2018 quarter has revealed it’s the best time to buy in Perth since 2013.
The Index, released quarterly, assesses whether it’s better to buy or rent in Perth based on past and current trends in the economic and property market climate.
Hayden Groves, President of the Real Estate Institute of Western Australia (REIWA) said the March 2018 quarter index showed the annual rate of house price growth required over 10 years to break even in the Buy-Rent Index had declined from 3.3 percent to 3.1 percent over the quarter, suggesting an improvement for prospective homebuyers weighing up the decision.
“To put that into perspective, Perth’s annual house price growth rate has been 5.9 percent for the last 15 years. Based on the March 2018 quarter Index, house prices in Perth would only need to grow by more than 3.1 percent annually for buying to be considered more financially beneficial than renting,” Mr Groves said.
“This improvement in buying conditions can be attributed to the Perth median house price softening by 1.9 percent during the March quarter, while the median house rent price increased $5 to $360 per week. We also saw the 10 year average mortgage rate drop to 6.43 percent, which means home owners are paying less on their mortgage repayments.”
“This is the most affordable buying environment we’ve seen in Perth for some time, so if you’ve been weighing up whether to buy, now is the time to take advantage of favourable market conditions,” Mr Groves said.
Mr J-Han Ho, a Property Researcher and Senior Lecturer at Curtin University in the School of Economics and Finance, said the data indicated a continued improvement for the home buyer in the near future.
“Our analysis shows home buyers gaining an advantage, largely due to the low interest rates for home loans, home ownership costs continuing to be affordable and the median rents stabilising,” Mr Ho said.
View the March 2018 quarter Buy-Rent Index
Source: REIWA
31 May 2018
