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July saw Perth listings fall to the lowest level in 12 months, with the winter season and a fear of being “homeless” leading the decline.
REIWA (Real Estate Institute of Western Australia) has revealed a drastic decline in the number of active listings in July, amid a decrease in the number of properties coming to market.
According to REIWA’s data, there were 3,382 active listings at the end of July, with consistently strong demand also playing a factor in the decline.
REIWA president Suzanne Brown said the decrease in properties coming to market is normal for the time of year.
One reason for this is that houses do not always look the most appealing in the winter, and a lot of effort is required to make them look presentable when it is constantly rainy.
“So, many people choose to wait until the traditional ‘spring selling season’ to list their home,” she said.
However, this year, the new listings that went to market dropped slightly in June before further falling in July.
Brown said that according to REIWA members, people are hesitant to put their properties on the market out of fear of being without a home.
“If they choose to buy a new home before selling their own, there may be financial implications, such as paying two mortgages until their home sells,” she said.
“While bridging loans are available, they may not be in a position to get finance to purchase before they sell.
“And if they can’t secure finance, they will be at a competitive disadvantage by having to make offers subject to the sale of their home and are likely to be overlooked in favour of buyers with cash or subject to finance offers.
“While selling first provides the advantage of being able to make an offer for cash or with a small finance component, sellers are then left with needing to find somewhere to live, potentially in a short time frame.”
Brown said winter can actually be a good time to sell due to the lack of competition from other sellers, in combination with strong demand.
“If you are considering buying before selling, it is a good idea to get your existing home ready for sale so you can get it on the market as soon as your offer is accepted,” she said.
“If you want to sell first, you could make a long settlement part of the contract. This will give you some time to buy a new home or find a rental.”
July saw Perth’s median house sale price increase 1.4 per cent to $797,000, the biggest monthly percentage increase since October 2024.
At the same time in 2024, the median house sale price was 15.5 per cent higher.
Likewise, the median unit sale price also increased, up 1.9 per cent over the month to $550,000 – 19.6 per cent higher than a year ago.
In July, the suburbs that experienced the most price growth included East Victoria Park, which was up 4 per cent to $1,050,000.
In addition, Dawesville saw an increase of 3.2 per cent to $765,000, Maylands was up 2.6 per cent to $1,000,000, Doubleview rose 2.5 per cent to $1,230,000, and Woodvale increased 2.1 per cent to $1,085,000.
The top performers also included Fremantle, Como, Bullsbrook, Falcon and Warnbro, seeing a growth of 1.5 per cent or more over the month.
Houses in Perth sold in a median of 12 days in July, which REIWA said was one day faster than June but three days slower than July 2024.
Units also sold in a median of 12 days, one day faster than June but three days slower than the same time last year.
“Members report homes that don’t need any work are selling faster and getting better price outcomes than those that do,” Brown said.
“Even in a highly competitive market, it highlights the value of investing in the presentation of your home,” she concluded.
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