Home Sales Slow On Back of Stamp Duty Relief

by Raymond Bohan

May 14, 2007

The first weekend of home sales under the state government’s new stamp duty regulations has shown mixed results, local real estate agents said today.

The regulations, announced by Treasurer Eric Ripper last Thursday, remove stamp duty for a first home buyer paying up to $500,000 for a house.

It is expected to help those who are struggling to enter the market, with the median price for a home in Perth skyrocketing to $405,000 in December 2006, more than double that of five years ago.

An increase in first home buyer activity was expected over the weekend, although the interest was not as great as expected.

“There was not too significant of a jump……we didn’t expect a huge jump,” Heron John from Bull Creek First National said today.

“As the rebate receives more publicity, we will probably see more of a domino effect, and more of an increase will come from that,” Mr John said.

His sentiments were echoed by Steve Comley of Professionals Real Estate in Cockburn, who did notice an increase of first home buyers.

“It was a reasonably quiet time, but there was a higher amount of first home buyers,” Mr Comley said today.

“I had about five or six come through my first house, and they were all first home buyers.  But someone did one around the corner and only had one come through.