Perth house prices to hit record levels in 2013: APM

Perth house prices are expecte to continue their "upward trajectory of growth", with median prices to be at record levels sooner rather than later in 2013, according the latest Australian Property Monitors (APM) housing market report.

APM records Perth house prices up 3.2% to $595,609 over the three months to April with unit prices up just 0.4% to $405,547.

Year-on-year Perth house prices are up 6.7% while the unit market has been largely flat, down 0.6%.

APM reports that first-home buyers remain active in the market motivated by the tight rental market and steeply rising rents. In addition the $7,000 first-home owner grant (FHOG) remains in place for both new and existing home purchases.

However, there are headwinds facing the market with APM warning of strains on the local economy emerging from the "record levels of new arrivals, particularly given the apparent topping out of the resources boom".

In addition, Perth’s unemployment rate rose to 5.4% percent over April - the highest monthly level recorded for three years.