Perth’s property slide is over and with the lowest median house price in the country, the buying conditions have never been better.
Western Australia is also showing among the highest proportion of first home buyer activity.
Pulse Property Group director Di Addenbrooke said first-time buyers were taking advantage of very affordable housing without being weighed down by negative equity.
“The slowing rate of decline in Perth was a very positive sign,” Ms Addenbrooke said. “A median house price of $451,800 opens up all sorts of opportunities.
“And the Australian Prudential Regulation Authority changed mortgage serviceability rules in July to make it easier to borrow, so banks are no longer required to determine if applicants can afford a sudden spike in interest rates to seven per cent.”
CoreLogic research director Tim Lawless said while Perth was the weakest market nationally, there was an improvement in the trend rate of decline.
Mr Lawless said rolling three-month figures recorded the smallest fall in 14 months.
Analysts are predicting a return to value growth in the Perth market by 2021.
Moody’s economist Katrina Ell said predicted house prices would rise by 3.1 per cent in 2021.
“We’re already seeing that the pace of decline in Greater Perth houses has slowed,” Ms Ell said.
According to the CoreLogic Home Value Index for October, there was a 1.2% rise in dwelling values nationally, delivering the fourth straight month of rising values, The October result was the largest month-on-month gain in the national index since May 2015.