Weekly sales hit 1000+ for the 1st time since May
This week, I had the honour of presenting my latest research on the effect of intergenerational wealth transfers on the probability of transitioning housing tenure status at the University of Melbourne. In layperson’s terms, this means how likely individuals are to shift between renting, mortgaging or outright owning if they receive money from their parents (either through inheritance or a gift). With older generations accumulating wealth, often through the rising value of the family home, how does transferring some of this accumulated wealth to their children affect their homeowning prospects?
I firmly believe wealth generated through the owned family home is great for Australia’s working and middle class and allows them to assist their children with homeownership. However, the flip side is that renting parents may not be financially able to help their children with their homeowning aspirations, especially as dwelling prices continue to rise. This research is a piece of the puzzle to ensure that everyone can access the “Great Australian Dream” as housing becomes less affordable.
Increasing wealth accumulation through homeownership is a nice segway into this week’s Perth property figures. Perth prices rose again this week, and the 0.25% increase means prices are now up nearly 6% for the year. With only three months to go till the end of the year, as the following chart indicates, Perth is well on track for a 9% annual increase.
Two weeks ago, we reported that Perth was recording an increase in weekly transactions and listings for sale may drop below the 5000 mark. Well, last week, sales jumped to 1013, and as our “Perth Weekly Sales” chart reveals, this is the first time sales are above our Upper 1000 mark since May. It looks like the winter slumber is over for the local market. Listings haven’t fallen below 5,000 but are just teetering on the edge, with Perth recording 5,034 properties for sale, as illustrated in our “Perth Weekly Listings” chart below.
While these market trends continue, Perth property prices will continue to grow.