Potential property buyers double in WA

06/01/2009 - 13:06

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Perceptions of a softer housing market and better mortgage management have boosted the number of Western Australians intending to take out a home loan within the next year, a survey has found.

Potential property buyers double in WA

Perceptions of a softer housing market and better mortgage management have boosted the number of Western Australians intending to take out a home loan within the next year, a survey has found.

According to the latest Mortgage and Finance Association of Australian / BankWest Home Finance Index, the number of people in WA intending to apply for a mortgage has jumped from 11.8 per cent to 22.9 per cent between April and November of last year.

"The number of West Australian home owners who believe the price of their house has fallen over the past 12 months was the highest of any state, with over half of all home owners perceiving a drop in value (53.5 per cent)," Bankwest head of Mortgages and Savings Paul Vivian said.

"This was over double the national average.

"This may be an indication of a correction in the WA market, which has been running hot for a few years now."

He added that Western Australians also expected a continued decline in property prices with some 70 per cent of the state believing the market will continue to cool in the coming quarter.

"This is higher than the national average (58.5), which has more than doubled since April," Mr Vivian said.

"More WA borrowers are also meeting their loan repayments than other states. Over 97 per cent of West Australian borrowers are easily servicing their loan. This has jumped 23 per cent in the last 6 months."

According to the index, 76 per cent of Australian borrowers are easily meeting their mortgage repayments, compared to 67.4 per cent in April.

 

 

The announcement is below:

 

Consumer perceptions that property prices are falling in WA has resulted in encouraging signs of a revival in the
stalling housing market in the state, with twice as many West Australians intent on taking out a loan now than six
months ago, according to the latest Mortgage and Finance Association of Australia (MFAA)/ Bankwest Home
Finance Index.

The number of people in Western Australia intending to take out a loan in the next year jumped from 11.8 per cent
to 22.9 per cent between April and November this year. This was the biggest increase of any state.

"These statistics signal a strong buying intent from the West and we will be watching closely to see if this is a
trend that will continue in our April survey this year," said Phil Naylor, CEO of the MFAA.

"West Australians are not alone either. Nationally, 2.5 per cent more people intended on borrowing in the next
year compared to April. This is the first time since November 2006 that there has been an increase in the number
of people who are likely to be in the market for a home loan in the next 12 months."

The proportion of respondents in Australia likely to take out a loan was up to just over 18 per cent from 15.6 per
cent in April this year.

"This will be welcome news to the property market, as it signals a possible revival in housing across the country,"
said Mr Naylor.

According to Bankwest Head of Mortgages and Savings Paul Vivian, the revitalised interest in borrowing is likely
due to a jump in the number of West Australians who are easily managing their mortgage repayments and
perceptions that property prices have fallen away in the past year.

"The number of West Australian home owners who believe the price of their house has fallen over the past 12
months was the highest of any state, with over half of all home owners perceiving a drop in value (53.5 per cent).
This was over double the national average.

"This may be an indication of a correction in the WA market, which has been running hot for a few years now,"
said Mr Vivian.

"West Australians also expect a continued decline in property prices, with almost 70 per cent of the state believing
that the market will continue to cool in the coming quarter. This is higher than the national average (58.5), which
has more than doubled since April.

"The positive news is that the perceived fall in the value of property helps address housing affordability problems
and also entices new entrants to the market, who may have otherwise been locked out because of high property
prices," said Mr Vivian.

"More WA borrowers are also meeting their loan repayments than other states. Over 97 per cent of West
Australian borrowers are easily servicing their loan. This has jumped 23 per cent in the last 6 months."

According to the Index, 76 per cent of Australian borrowers are easily meeting their mortgage repayments,
compared to 67.4 per cent in April.

 

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