Q2 2017 Key Market Indicators – Western Australia
The PRD Q2 2017 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property perspective. The PRD Key Economic Indicators cover both national and state level data, comprising of:
· Number of loans to first home buyers
· Home loan affordability index
· Number of dwelling approvals
· Consumer sentiment index
· Standard variable loan
· Consumer price inflation index
· Unemployment rate
· Weekly family income
· Nett migration
A key finding for Western Australia is in relation to affordability, where despite a decreasing trend over six months to December 2016 (to 43.0 index points), it remains above the Australian average of 32.9 index points. This is reflected in a 1.3% increase in the number of loans to first home buyer over the past six months. Interestingly this is the lowest growth in the first home buyers category, across all states. This may be explained by a higher than the Australian average unemployment rate - currently at 6.5% in March 2017, and being the only state with a stable trend in weekly family income ($1983).
Dwelling approvals have seen cooling measures, decreasing number of approvals to 1628. Nett migration has increased, currently at 1250 in May 2017. That said the increase in nett migration is not at an influx to the level of New South Wales and Victoria, which suggests a potentially balanced market in demand and supply, and provides current stock the opportunity to be absorbed in the market.