The Perth Market Has Shifted — Here's What That Actually Means for You

Let me be direct with you: the Perth property market is going through a genuine shift right now. After a couple of years where homes were selling in under a week and buyers were competing hard for almost everything, the pace has changed. More stock is coming to market, buyers are taking a little longer to decide, and the headlines — especially from the east coast — are making some people nervous.

So I want to cut through the noise and tell you what's actually happening, what it means if you're thinking about selling, and why I still think Perth is in a fundamentally strong position.

What the numbers are telling us

The Perth median house price reached $920,000 in May — up 2.2 per cent over the month and 16.5 per cent higher than a year ago. That annual growth figure is extraordinary by any measure. For context, Cotality's latest data shows Perth values rose 25.8 per cent over the past year compared to just 0.5 per cent in Melbourne. The gap between Perth and other capital cities remains enormous.

But we've also seen the market ease. Properties that were selling in 8–9 days in February are now taking around 13–14 days. Total listings in Perth hit 5,901 in the week ending 21 June — up nearly 48 per cent on the same time last year. Buyers have more choice than they've had in a long time, and they're using it.

Does that mean things are falling apart? Not even close. Fourteen days on market is still well below the 50-day average that was considered normal before COVID. It just means we've returned to something closer to a two-sided market.

Why the market has cooled slightly

There are two main drivers at play, and neither of them should come as a surprise.

Interest rates. The RBA held rates steady in June at 4.35%, following three consecutive increases earlier this year. That's welcome news, but the hold doesn't erase the impact of those hikes. Cotality's research puts the cumulative addition to a typical $735,000 mortgage at around $350 per month since the tightening cycle began in February. Buyers are feeling that. Borrowing power has reduced, and some people are taking more time to get their finance sorted before committing.

More listings. We've been seeing over 1,000 new listings per week in Perth across April and May. That's a big increase from earlier in the year, when supply was unusually tight. More properties means buyers have options, and options create patience.

Both of these things are normal features of a market finding its balance.

Affordability: the harder conversation

I want to be honest here because I think some commentators gloss over this part.

Housing affordability in WA is now at its worst level since 1996. According to the Real Estate Institute of Australia, WA households need to put 45.9 per cent of their family income toward mortgage repayments — up from 40.7 per cent just 12 months ago. The previous peak was 41.2 per cent set back in 2008. We've surpassed it.

Perth's median house price sat at $900,000 at the end of the March quarter — a 5.3 per cent jump in just three months. When you combine that with higher interest rates, you understand why first home buyers in particular are feeling squeezed. The average loan size in WA is now $702,699, up 18.4 per cent over the year.

That said, WA remains more affordable than New South Wales (58.4%), Queensland (53.2%) and South Australia (51%) when measuring income-to-repayment ratios. We're still the better option for buyers priced out of those markets, and interstate migration continues to support our demand base.

For renters, the picture is also tight. The median weekly house rent sits at $750 (up 9.5% year-on-year) and units at $700 (up 7.7%). Rental listings are actually slightly lower than a year ago, so there's no relief coming from that side in the near term.

What this means if you're thinking about selling

Here's my honest read on where we are.

The frenzy of early 2025 — where anything and everything sold in days, sometimes above list price — has passed. That was an unusual period, not a baseline. What we're returning to now is a more considered market, where preparation matters, pricing matters, and presentation matters.

The good news is that underlying demand in Perth hasn't disappeared. Our economy is strong, population growth continues, and we're still significantly undersupplied relative to what the city needs. Perth values are still up nearly 17 per cent year-on-year. Sellers who bought even two or three years ago have built substantial equity.

But the sellers who are going to do best in this environment are the ones who approach it properly. That means pricing accurately from day one rather than testing the market. It means presenting the home well. It means choosing an agent who knows your specific suburb and buyer pool — not just someone who lists everything and hopes for the best.

In our area — Rossmoyne, Shelley, Riverton and surrounds — the fundamentals are strong. School catchment, lifestyle, and community all continue to drive demand for family homes. But buyers here are sophisticated. They're doing their research, comparing options, and they'll walk past a poorly prepared or overpriced listing without blinking.

What about interest rates going forward?

The RBA's June hold was welcome, but the path ahead is genuinely uncertain. Inflation is still running above target — trimmed mean inflation came in at 3.4% in April — and the labour market, while showing some softening, hasn't eased enough for the RBA to declare victory.

The market has priced in roughly a 50/50 chance of one more hike. Most economists expect rates to stay where they are for the remainder of 2026, with cuts unlikely until well into 2027.

That means the current buying conditions — more stock, more negotiating room, buyers with more time — are likely to persist for the next six to twelve months. If you've been sitting on the fence thinking about selling, that's worth factoring in.

The bottom line

Perth is not falling. Perth is normalising. After years of extraordinary growth, the market is finding its level, and that's healthy. Values remain near record highs. Demand remains real. And relative to the rest of the country, we're still a compelling place to own property.

What has changed is that the market now rewards those who prepare properly. If you're thinking about selling — whether this year or next — I'd encourage you to start that conversation early. Good preparation takes time, and the sellers who take it seriously are the ones who get the results.

If you'd like to understand what your property is worth in the current market, or just want a plain-English conversation about your options, I'm always happy to talk. That's what we're here for.