Rising petrol prices in Perth have been the equivalent of a 0.25 per cent increase in home interest rates.
Higher petrol prices means that the disposable income of first home buyers, in particular, decreases, and this is the biggest homebuyer group which generally purchases homes in the outer suburbs of Perth.
First homeowners are particularly susceptible to petrol increases because many first homeowners in Perth can be classified as ‘marginal’, as they required the assistance of the First Home Owners Grant and historically low interest rates to purchase their home.
Any further rises in petrol prices, combined with interest rate rises, could increase the likelihood of forced home sales.
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