Housing figures show Margaret River and Busselton leading the State in growth

Capes home prices have come close to leading the State in growth during the past 12 months, according to brand new Real Estate Institute of WA figures. While the massive jump in prices was good news for many, it comes amid tightening economic conditions which could go against new homebuyers and those at the lower end of the market, experts claim. Homes in the Augusta-Margaret River sub-region rose 23 per cent in the past year, followed close behind by Busselton at 16.9 per cent. Growth during the quarter to June was also a cracker, with Busselton posting a 4.5 per cent jump and Margaret River 4.3 per cent. Those numbers far-outstripped nearby regional centres of Bunbury, at 6.7 per cent for the year, and Albany, at 7.8 per cent, with only homes in Port Hedland eclipsing those figures. Dunsborough realtor and REIWA deputy president Joe White said the “outrageously high” figures could overstate growth because so many Capes listings were sold off-market and thus not captured in the REIWA stats. He also noted the number of homes for sale across the Capes decreased significantly compared to the pandemic-led boom of 2020-21. “The sales numbers are down, which means listings are drying up,” he said. Mr White said rising interest rates were a particular factor of concern for those at the lower end of the market with less capacity to service rising mortgages. “The lesson is to look for ways to adjust your spending early,” he said. While the next year would put a strain on those homebuyers, many would elect to sell, adding more listings to the market and probably leading to a downturn in house prices during the next 12-to-18 months. “That’s going to have to have a dampening effect,” Mr White said. “It’ll bite particularly at the cheaper, more affordable end of the market.” Stocker-Preston realtor Mark Murray told the Times said despite the new figures, the region remained one of the most affordable markets in the country, bolstered by strong employment figures. “Established homes are short in supply,” he said. “There is still good demand for homes, but more concerningly, rentals are in short supply. “Let’s hope that the State Government’s intended changes to the Residential Tenancy Act don’t occur as they will deter rental investment and will make more landlords want to sell.” Mr White said the State Government would have to review its stamp duty policy because many buyers were paying multiple times as they followed jobs across regional WA and those costs represented a deterrent to the wider economy. He also said State and Federal pandemic stimulus measures had distorted the market, which would now correct itself while the Reserve Bank pushed interest rates in a fight against national inflation.