Perth home values have risen in the past month, although property groups CoreLogic and PropTrack have released different findings in their March reports.
Perth home values have risen in the past month, although property groups CoreLogic and PropTrack have released different data in their March reports.
CoreLogic released its home values index for March today, recording a 0.5 per cent rise in Perth’s dwelling values in the past month.
However, REA Group’s PropTrack found only a 0.24 per cent monthly growth in Perth’s dwelling values in March in its report.
Corelogic’s March report also found a 1.9 per cent annual growth for Perth home values, while PropTrack recorded a 3.23 per cent rise for the same period.
The median Perth house value is $567,111, according to CoreLogic, but PropTrack's report listed the average home price as $565,000.
CoreLogic research director Tim Lawless said a combination of low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration contributed to the rise.
“Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices,” he said.
“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost 20 per cent below the previous five-year average.
“Purchasing activity has also fallen but not as much as available supply. Capital city sales activity was estimated to be roughly 7 per cent below the previous five-year average through the March quarter.
“With rental markets this tight, it’s likely we are seeing some spillover from renting into purchasing, although, with mortgage rates so high, not everyone who wants to buy will be able to qualify for a loan.
“Similarly, with net overseas migration at record levels and rising, there is a chance more permanent or long-term migrants who can afford to, will skip the rental phase and fast track a home purchase simply because they can’t find rental accommodation.”
PropTrack senior economist and report author Eleanor Creagh said Perth was the second cheapest Australian capital city for dwelling values, after Darwin.
“Perth home prices recorded a 0.24 per cent increase in March to reach a new price peak,” she said.
“This relatively affordable market has held up better than other capitals over the past year, with prices increasing 3.23 per cent.
“The share of average incomes taken by mortgage repayments on a median priced dwelling in Western Australia is also the lowest in the country, with the exception of the Northern Territory.”
CoreLogic's March report recorded a 0.9 per cent monthly growth and a 4.9 per cent annual growth in dwelling values in regional WA, with the median home price being $429,455.
Meanwhile, PropTrack's report said home prices in regional WA has fallen by 0.16 per cent in March but recorded a 4.79 per cent annual growth, with the median home price listed as $455,000.
