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Housing affordability on the increase in Perth

Preliminary data from the Real Estate Institute of Western Australia (REIWA) has shown that housing affordability has significantly improved over the past three months.

Figures taken by REIWA are inclusive of the three months up to November 30th of this year and indicate that $535,000 is the average price for a house in Perth.

President of REIWA Hayden Groves said that the median house price they have found is in agreement with another Housing Affordability Report.

The Real Estate Institute of Australia/Adelaide Bank Housing Affordability Report showed that this has improved across the whole of Western Australia.

In September's financial quarter, the proportion of income required to meet loan repayments came in at 23.8 per cent - an improvement over the previous quarter.

Speaking on the affordability improvements, Hayden Groves said: "Perth hasn't been this affordable for homebuyers for several years."

He continued to say that REIWA's "latest preliminary data for the three months to November 30 [is] showing that 42 per cent of sellers are adjusting their price to sell".

Reported previously, one of the main reasons behind the improvement in house prices on the market is likely due to the time of year.

Those selling houses are keen to drop prices to get their property sold before the year ends, in order to save themselves emotional and financial stress.

A serious impact on the improved housing prices has also been as a result of the official abolishment of the First Home Owner Grant.

At the end of November the total number of listings for sale came in at 16,475, but these numbers enjoyed a peak during the month, rising up to 17,078.

Mr Groves gave his opinion on these numbers, saying that: "This is up 18 per cent over the three months to November and up 23 per cent on the year to November 2014 but the recent fall in listings could indicate that listing levels have peaked."

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