Equity levels in Perth Property Market

Despite of the Property prices dropping recently the figure sales volume has increased 1% in September which is good inflow for property market. A new report reveals WA’s property recession has caused a spike in the number of homes falling onto negative equity with about one in 20 now worth less than their purchase price. The RP Data annual equity Report shows, Perth has the second highest number of homes with negative equity (4.9%) all over Australia and is home to five of the 10 regions with the highest rates in the country.

However, based on the official Landgate figures, Perth Property market recorded its first positive sign that things were moving up in August with 28% increase in sales compared to the month before. Even though Perth has negative equity but still it is a good sign for the Perth property market because there is still plenty of equity out there. This is a reminder to invest for a long term because in the long run with negative equity will fade out as the market improves.