Perth housing market cools as new listings climb

The Perth housing market has shown signs of cooling, with the median house price holding steady at A$735,000 after a prolonged period of growth. This stabilisation comes as new listings have increased by 12%, indicating a shift in the market dynamics. The rise in new listings has also led to an increase in the average days-on-market, which now stands at 16. This change suggests that buyers are no longer facing the intense competition that characterised the market during its growth phase.

The increase in new listings and days-on-market points to a more balanced market, where buyers have more options and are not feeling pressured to make quick decisions. This trend is likely to continue, as sellers adjust their expectations and pricing strategies to reflect the changing market conditions. With 18 months of growth behind it, the Perth housing market was due for a correction, and the current steadying of prices may be a welcome relief for buyers who were previously struggling to keep up with rising prices.

The cooling of the Perth housing market has significant implications for Western Australia, as the state's economy is closely tied to the property sector. A more balanced market can help to boost consumer confidence and encourage more people to enter the market, whether as buyers or sellers. As REIWA president Suzanne Brown noted, "We're seeing the market find a healthier balance between buyers and sellers." This shift towards a more sustainable market is likely to have a positive impact on the broader economy, as it reduces the risk of a sharp correction and promotes more stable growth.

As the market continues to evolve, it will be important to monitor the trends and adjust accordingly. With the median house price steady and new listings on the rise, buyers and sellers alike will need to adapt to the changing conditions. The outlook for the Perth housing market is one of cautious optimism, as the sector navigates this new phase of growth and adjustment. As the market finds its footing, it is likely that we will see a more sustainable and balanced property sector emerge, which will have benefits for the entire state.