WEST Australian home owners have missed out on a $1 trillion explosion in the value of the nation's bricks and mortar.

Over the past two years, according to the bureau of statistics, the value of Australia’s homes have exploded by almost 17 per cent or $1 trillion.

The 9.9 million homes, apartments and units across Australia are worth $6.7 trillion. Two years ago there were almost 9.6 million dwellings worth a combined $5.7 trillion.

But that surge in value has bypassed Perth with the bureau reporting house prices down another 0.8 per cent in the three months to the end of June.

Perth house prices have tumbled by 8.5 per cent over the past two years and are now back where they stood in September 2012. By contrast, over the same period Sydney house prices have soared by 75 per cent while in Melbourne they have climbed by 51 per cent.

Property council executive director Lino Iacomella said the State Government had to do more to stabilise house prices in Perth by focusing on job creation.

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“There is a plethora of major infrastructure projects in the pipeline since the reveal of the State Government’s Metronet plans,” he said.

“Creating long-term employment opportunities will draw people back to WA, driving the economy forward.”

The property market, and the ability of people to buy into it, continues to be one of the Reserve Bank’s biggest concerns.

Minutes of its latest board meeting, at which official rates were kept at 1.5 per cent, showed the ongoing problem of soaring house prices in parts of the country while wages for people buying those homes flatlining.

It showed balancing the risk posed by “high household debt” with potential inflation risks remained a key issue along with how people would service big loans if interest rates started to rise.

“Solid growth in employment was expected to continue, which would support household incomes and thus spending in the period ahead. Members acknowledged the risks to this scenario from growth in housing debt having outpaced the slow growth in household incomes over the preceding few years,” it said.

Westpac chief economist Bill Evans said the tension between weak growth in wages and spending by indebted households would dominate the RBA’s thinking for an extended period.

That meant it was unlikely the Reserve would lift interest rates this year or next.