Perth houses are currently as affordable as they were in 2003 and 1996

Perth house prices rose very strongly from 2002 to 2006. Over this period, nominal prices increased by 150%.

However, since 2006, nominal prices have only increased by 17%, which is a decline in real terms...

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While house prices fell in real terms from 2006 to 2014, incomes kept on rising, meaning Perth's house price to income ratio today is back at 2005 levels...

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And when we consider true affordability, by taking mortgage rates into account, Perth prices are more affordable than they have been since 2003...

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With affordability stronger than it has been for more than a decade, Perth today is quite similar to Sydney in 2011-2012.

In 2011-2012, many Sydney bears expected prices to crash.

What they didn't realise is that Sydney prices at the time were at their most affordable for over a decade.

Instead of crashing, Sydney prices have increased by 40% since 2012.

Could Perth experience a similar boom over the next few years?

Perth houses are currently as affordable as they were in 2003 and 1996