The number of first home buyers of real estate in Perth and surrounding state areas was strong throughout 2013, according to information from the Urban Development Institute of Australia of WA (UDIAWA).
In a January 15 statement, the UDIA noted that 2013 was the "most active year" for first time buyers in the state since the Federal government's boost came to an end in 2009. This could be a great sign of confidence for other homebuyers to make their first purchase in the state this year.
Rise in first time buyers
At a time when the number of first home buyers is dropping nationally, the fact that Western Australia experienced a rise of 20,000 new buyers in the market in 2013 is a very encouraging result for the state.
In a January 13 statement from the Real Estate Institute of Australia (REIA), President Peter Bushby commented on the low number of first home buyers in the national real estate market.
"The proportion of first home buyers in the number of owner-occupied housing finance commitments fell to 12.3 per cent compared to the October figure of 12.6 per cent and is the lowest figure since data began to be collected in July 1991," said Mr Bushby.
However, UDIA Chief Executive Debra Goostrey noted that it's Western Australia's accommodating market conditions that have helped to boost up the number of first home buyers in the state over the last year.
"Declining interest rates and tight rental conditions over the last two years made home ownership an attractive prospect for many young Western Australians," said Ms Goostrey in a January 15 media release.
"The last time we had so many first home buyers was during 2009 when the Federal government provided up to $14,000 on top of the existing $7,000 grant."
Loan enquiry strong
Despite the low number of purchases by first home buyers across the country last year, Loan Market Director of Sales Mark De Martino noted that enquiries are still strong.
"Enquiries for first home buyers remain strong at Loan Market, accounting for 39 per cent of enquiries in November and December. These active buyers are shopping around and waiting for the right property and time to purchase," he said in a January 13 statement.
"The first home buyers of 2014 are going to be very prepared and well researched," he said.
However, rates may not stay at a historically low level for long. Mr De Martino said there was some indication that they could be raised this year after some lenders have begun to change their fixed interest rate home loans.
