On average, West Australians are now taking out mortgages worth $538,000, the highest figure on record.
Australian Bureau of Statistics data for April highlights Perth’s runaway housing market, with the average new mortgage amount nearly $32,000 higher than it was three months prior.
Since last September, the average new mortgage in WA has increased nearly $8000 each month on average.
When records began, in April 2006, the average loan size was $229,000.
The new analysis by WA Senator Dean Smith will inform part of the federal parliament’s select committee on cost of living.
“Many WA households are already in a vulnerable position and could be forced over the edge if there are further rate rises by the RBA, which continues to do the government’s heavy lifting for it,” Smith said.
Average loan sizes for owner-occupier dwellings, by state. Credit: ABS
“Month on month, it becomes harder for homeowners to make their dreams a reality in WA; for some, it is now virtually impossible”.
WA Council of Social Services chief executive Louise Giolitto says housing pressure is one of several factors leading to a 50 per cent increase in demand on service providers such as Foodbank, Anglicare and the Red Cross.