Perth’s property market is once again showing signs of upward momentum, with the number of properties for sale falling to under 5000 — an uncommon trend for this time of year.
Current listings have dropped to 4764, down from 5091 just a month earlier. This decline in available homes is placing upward pressure on prices, as buyer competition intensifies in an already tight market.
Historically, sharp reductions in stock have been linked to rapid price growth. In mid-2024, listings fell as low as 3300, sparking intense buyer urgency and a 24% surge in Perth’s median house price. Although stock levels began to climb in the second half of the year, they remained well below a balanced market threshold and have now fallen again.
Despite expectations for listing numbers to increase after the holiday period, they have continued to decline. This suggests many homeowners remain hesitant to sell, even as buyer demand stays strong. Expectations of interest rate cuts may also be contributing to the current conditions, with potential sellers opting to wait for more favourable borrowing environments.
While total listings are lower than last month, they are still higher than this time last year. Some homeowners may be planning to enter the market in the coming weeks, which could lead to a moderate increase in new listings.
However, the market is no longer mirroring the extreme conditions seen during last year’s supply crunch. Population growth — a key driver of housing demand — has begun to ease, and buyers are now approaching purchases with more caution. While well-presented homes are attracting multiple offers, others are taking longer to sell.
Further pressure is expected from federal housing policy changes following Labor’s recent election win. One key measure will expand access to the 5% deposit scheme to all first-home buyers, regardless of income. This could bring approximately 80,000 new buyers into the market each year.
Although the policy lowers barriers to entry for many Australians, such as removing the need for a 20% deposit and lenders’ mortgage insurance, it could contribute to short-term price inflation by boosting demand ahead of any meaningful increase in housing supply.
Over time, higher prices may help incentivise more construction activity by making previously marginal developments viable, potentially easing long-term affordability pressures.