HOUSING AFFORDABILITY ?

 Housing affordability improved slightly in Western Australia in the September Quarter (so REIWA reports) well it might have in the outer areas of Perth perhaps.

Apparently, the proportion of family income devoted to meeting the average loan repayments decreased to 40.5% over the quarter.

The Reserve Bank of Australia's decision in August to lower the official cash rate target to 3.60% helped reduce borrowing costs, and that is reflected in the slight improvement in affordability in Western Australia in the September quarter.

Over the 12 months to the end of September it is a different story.

Australia's housing affordability has increased by 1.6 percentage points over the year, but this is not true in Western Australia where there has been a decline in affordability over the 12 months to the end of the September quarter. This is due to the strong upward price movement of properties.

As prices rise, people have to borrow more to buy a home and a greater proportion of family income is required to make mortgage repayments.

Price growth remains very strong in the Western Australian market and with the December meeting of the Reserve bank keeping interest rates on hold, we expect affordability to be further challenged as we move into 2026.

Despite the decline in affordability, Western Australia is comparatively attractive for home buyers, with only Tasmania and the two territories being more affordable.

Seriously, with all the reports that come out our governing bodies I am wondering if they are actually up with it all.

We are finding that there is not enough property for everyone to buy, there is not enough rentals for everyone either. Short term rentals are going gang busters and the investors are leaning into those more because of the returns.

We are selling properties at record prices and within 10 days of listing them so I am not sure where all this data comes from but obviously different areas have different results.

If you need to buy then please buy, please give us a call if you  need to sell we are in dire need of properties we have pretty much sold out.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!