One indicator on how deeply wealth has penetrated into society is the state of the first home buyer market, where affordability and confidence are critical elements.
The first home buyer has been absent in the eastern states for some time but in WA there’s something of a boom. And this has happened despite a three-fold increase in the cost of the average first home over 14 years.
In 2000, there were 1,430 first home buyer grant applications across the state for the month of July. That was when the entry for the median purchase price for established homes was $122,000.
Over the last year, monthly first home owners grant applications have been between 1,600 and 1,700. The Office of State Revenue reports the median purchase price for first home buyers is $438,000.
The Real Estate Institute of WA says: “Of course the median is only the middle price which means that half of all first home buyers are purchasing under $438,000 and there is plenty of stock under $400,000, including house and land packages.”
The percentage of first home buyers as a proportion of the overall housing market has been above average for some time and last year was at times almost 30 per cent of the whole market.
Read more: http://www.businessinsider.com/mining-boom-impact-on-western-australia-2014-3#ixzz30G7jQXQR
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