Recent property articles around the country have reported a slump in the number of first home buyers in the market, but it’s a whole different ball game here in the West.
Media coverage has suggested that property prices around the country are unaffordable and competition from investors is a proving to be a deterrent to potential first home buyers.
As many Western Australians continue to purchase their first home in 2014, there is little evidence to suggest that the mentioned high prices and competition are in any way off-putting.
It’s important to understand that the recent “slump” speculations in the media are very east-based and not so relevant here in WA.
The First Home Owner Grant (FHOG) changes in 2013 certainly made a noticeable impact in the weeks following the announcement with an activity slow reported. The decline was however, short lived, and the New Year has seen first home buyers leaping back into the market.
Of course it would be wrong not to acknowledge that the market is indeed changing. We are seeing new trends such as trade-up buyers emerge at a steady rate; however, first home buyers are still very much in the real estate game.
The proof is in the pudding, which in this case, are the statistics.
In 2000, when the FHOG was first introduced, the median house price among entry level buyers was $122,000 with 1,430 first homes purchased.
Thirteen years later, 2013, there were 1,840 first homes purchased at an entry level median price of $430,000. This shows that within a decade, numbers have increased despite the median house price of entry level properties almost quadrupling.