Spotlight on the WA Economy 2019
As a First Home Buyer, knowing when is the right time to buy can be a tricky decision.
Most expert commentators however would tell you that economic indicators will often show when a property market is about to improve, or potentially decline. So it is a great place to start.
What’s in store for WA’s economy in 2019?
It seems the future is bright!
An improving mining sector, jobs growth and lower unemployment rates are key indicators that WA’s economy is on the up in 2019.
In addition to this, overseas and interstate migration has eased.
WA business confidence is optimistic with the WA Super – Chamber of Commerce and Industry’s (CCI) Business Confidence Index - which provides a snapshot of state-wide economic conditions and business expectations - showing business confidence in WA economy’s short-term (three month) and medium-term outlook (12-month) has remained above the ten-year average.
The survey found businesses were expecting economic conditions to continue to get better, with 52 per cent of participants expecting that the economy would strengthen during the next 12 months.
Businesses in construction (58 per cent), manufacturing (55 per cent), and professional services (50 per cent) were confident and expected better economic conditions for the next 12 months, the survey found.
What does that mean in the housing market?
This also brings positive news for the housing market and it starting to show.
Perth’s median house price increased 5.2 per cent to $510,000 during the December 2018 quarter, latest Real Estate Institute of WA data has revealed.
According to REIWA this was a good start for the New Year: “While we don’t expect to see rapid growth in the Perth property market in 2019, REIWA’s outlook suggests sales volumes could start to increase this year. With house prices in Perth remaining relatively affordable and consumer confidence levels on the incline, this could translate into increased activity in 2019.”
REIWA also revealed 69 Perth suburbs experienced an increase in median price during the December 2018 quarter, which included Beaconsfield, Hillarys, Cannington and Coodanup.
Homes were also selling quicker during the quarter and were being snapped up within an average 65 days, which was seven days faster from the September quarter.
Baldivis, Morley, Gosnells and Dianella were among the top suburbs with the most sales.
As the market for existing residential property moves, this begins to move the house and land market too.
For those planning to make their leap on to the property ladder in 2019, there has never been a better time to buy with improved affordability and record low interest rates presenting a perfect opportunity.
The Housing Industry of Australia’s Affordability Index for Australia’s capital cities found Perth’s index grew 5.7 per cent in the year to December to 113.3 – another good sign for prospective home buyers.
The report found that a “combination of declining home prices, growth in wages and historically low interest rates creates a situation where the HIA Affordability Index shows that affordability in six of the eight capital cities was more favourable than the 20 year average.”
Want to know more about how you could get into the property market with My First by Pindan Homes? Contact us on 1300 108 763 or submit an enquiry here
Source: Pindan Homes