Perth property: Listings drop to record low, with more than 55 suburbs recording just one listing in August

The number of Perth properties listed for sale has dropped to an all-time low with stalling supply threatening to push prices further through the roof. Just 2981 houses, units or blocks of land were up for grabs at the end of August, which the Real Estate Institute of WA declared was the lowest number since their records began. That was down a whopping 18.3 per cent compared to the same time last year. It’s also far less than the 4647 real estate agents registered across the State, sparking intense competition in some parts of the industry. Even as interest rates have been falling and the jobs market staying strong, Perth homeowners have been putting sale plans on ice. Some have delayed hanging up the “for sale” sign, lured by the promise of future price rises; others were stuck in a stalled market, unable to sell their home because it is just so hard to find another. Fewer properties were put up for grabs over the past three months than in any winter since 2019. Those houses that do get listed are usually snapped up in just 10 days — unchanged from August 2024 — and are now changing hands for an average price of $800,000, according to REIWA. The worry for real estate agents is that homeowners are reluctant to sell their biggest asset because there’s little else available to buy, clogging up the system. “The buyers are definitely there. The problem is the stock levels,” The Agency director Corey Adamson told The West Australian. “From my knowledge, we’ve never been that low before.” It’s an anxious time for many homeowners, he said. “They’re not selling until they buy something else (and) there’s nothing to buy right now,” Mr Adamson said. “We’ve put properties on the market, brought the owners magnificent offers, but they cant find anything (else). “They end up taking properties off the market.” He estimated about one in every 25 sales fell over for that reason and said more apartments would be crucial across Perth to help free up the pipeline. A remarkable 57 Perth suburbs had just one property listed for sale at the end of August, including Crawley, Alfred Cove and Glendalough. A further 45 suburbs, including Riverton, North Fremantle and Bicton, logged just two listings. But the lack of homeowners looking to move will also help keep a lid on demand and put a handbrake on potential price pressure. New Home Building Brokers managing director Tristan Kirkham said he couldn’t see the situation improving in spring — “but you never know”. Investors were “holding onto their properties because rental yields are so strong” and selling would mean giving up a solid return in a tight market, he said. “On the owner-occupier side, some of our clients aren’t selling because they don’t have anywhere suitable (or affordable) to move into,” Mr Kirkham said. “The fewer homes on the market, the harder it is to find the next step, which must impact low listings.” It’s not just Perth where sellers feel hesitant. AMP chief economist Shane Oliver said listings in Sydney and Melbourne were much lower than a year ago as homeowners hold back and wait for higher prices. Lower interest rates had also reduced pressure on distressed borrowers, meaning fewer properties on the market. “Further gains in home prices are likely as interest rates fall further, real wages continue to rise, consumer sentiment has picked up, the property shortage remains and Government support for first home buyers ramps up again,” he said. “There is still an accumulated housing shortfall that has been built up over the last few years of under building. We estimate this to be around 200,000 to 300,000 dwellings (nationally).” That massive shortage will prove to be a big challenge for the Federal Government which has actively pushed a national plan to build 1.2 million by 2030. Master Builders WA chief Matt Moran rang the alarm on Tuesday that WA was still tracking below that target. That highlighted mounting pressure on the building and construction industry, he said. “Every day the accord’s goal of 129,700 new homes for WA (by 2030) looks less achievable,” Mr Moran said. REIWA president Suzanne Brown said homes in Perth were selling “extremely quickly.” But there were reasons for optimism and she was hopeful of a rebound in the number of homes on the market in the months ahead. “There is some positive news,” Ms Brown said. “Many members are reporting they have sellers getting ready to list in spring, so we are expecting an increase in new listings as we move into the warmer months.” Yet, the Federal Government’s scheme to allow first home buyers to get into the market with 5 per cent deposits would also boost activity. “You can see that’s only going to fuel the demand side even further, when we’re still struggling supply,” Ms Brown said. “I can’t see it changing anytime soon unfortunately.”