A different look at Perth housing
Median Perth housing prices tips over half a million dollars. Nationally the median house price has risen by 4.8 per cent.
New home sales in WA have surged in January, but an industry group has warned it needs to see more evidence that affordability problems do not become an issue to be convinced of a sustained recovery.
A survey of Australia's largest builders by the Housing Industry Association shows sales in WA jumped 12.2 per cent, second only to Victoria's massive 17.1 per cent rise.
There were 1362 houses and 878 units sold in WA in January, with all the data suggesting a surge.
New home sales in WA have surged.
Apart from the month-on-month increase, new home sales in the three months to January 31 were up 6 per cent on the previous quarter and 11 per cent on the same quarter the previous year.
However, they actually fell 5 per cent in the 2009 calendar year.
"New home sales are definitely trending higher again ... (but) we need to see further evidence of upward momentum to be convinced of a sustained recovery that isn't going to be stifled by affordability constraints," the HIA said.
Nationally, the volume of homes sales jumped 9.5 per cent after falling 4.6 per cent in December.
The gain was the most since August when they leapt 11 per cent.
''With home prices and interest rates on an upward march, affordability is going to suffer in 2010 until the new stock comes on stream later in the year,'' said TD Securities senior strategist Annette Beacher.
In New South Wales, house sales increased by 3.1 per cent, while they rose 6.3 per cent in Queensland and 6.6 per cent in South Australia.
''The successful policy of targeting new home construction via the tripling of the grant to first-time buyers has now gone, interest rates are on the rise, and the considerable supply side obstacles to boosting the new housing stock, such as land supply and skilled labour constraints, are still clearly evident,'' said HIA chief economist Harley Dale.
Mr Dale said activity from investors and upgraders, if sustained through the first half of the year, could trigger a new round of building offering relief for a "very challenging period for residential construction."
Detached house sales rose 10.1 per cent in January, while multi-unit sales achieved their second consecutive monthly increase rising 4.1 per cent.
