Mortgage belt heads charge

as posted here

The ailing mortgage belt has been resuscitated with increased activity of first home buyers helping some of WA's largest local government areas.

Figures from property analyst RP Data show the City of Stirling - WA's most populous local authority - led the way for house sales in the state in the first three months of this year, accounting for 8 per cent of all activity.

However, Wanneroo, with about 60,000 fewer people and in the heart of the mortgage belt, almost matched it in numbers of sales, with Joondalup, Rockingham and Gosnells close behind.

RP Data national research director Tim Lawless said the figures showed buyers were taking advantage of "perfect buying conditions" of low interest rates, falling prices and the first home buyers boost (a $14,000 grant to buy established homes or $21,000 to buy a new one).

The housing market had been divided into two, those priced above or below $600,000, with fewer sales occurring in the former bracket and more in the latter.

Houses priced under $500,000 accounted for 70 per cent of the market nationally, up from 65 per cent last year.

But it was at an even lower level - houses priced between $300,000 and $400,000 - where most of the action was.

"No surprises here, this is where first home buyers are most concentrated," Mr Lawless said.

The jump in activity was not as noticeable in regional areas, where properties with a price tag of less than $300,000 accounted for about half the market.

Meanwhile the Housing Industry Association said sales of detached new homes in WA fell by 4 per cent in the three months to April 30, going against a national trend.

However, sales of all new homes increased slightly.

HIA chief economist Harley Dale said he expected home building activity to show it was well and truly on the road to activity from this month, due to low interest rates and the first home owners grant boost for new houses.

New home starts nationally could increase by 11 per cent in the next six months, Dr Dale said.



WA local government areas recording largest number of sales in three months to March

LGA, percentage of WA sales, percentage of national sales, median house price

Stirling, 8, 1.3, $570,000

Wanneroo, 7.8, 1.2, $410,000

Joondalup, 7.1, 1.1, $490,000

Rockingham, 5.8, 0.9, $365,000

Gosnells, 5.5, 0.9, $365,000

as posted here