Is it a buyers’ market?

Is Perth experiencing a buyers’ market?

With negative market commentary out of the east coast impacting sentiment in Western Australia, I felt it was important to give some local context.

The Perth market has moved quite quickly from a strong sellers’ market to being far more favourable for buyers. However, broadly, conditions currently are more balanced than a buyers’ market.

That said, there are many factors at play, and market dynamics vary from suburb to suburb and with the type of property you are selling.

For example, investor purchasing activity has declined significantly following the changes to taxation policy in the 2026-27 Federal Budget. Unfortunately, so has first homebuyer activity.

This means homes and suburbs that would previously have attracted strong competition from investors and/or first homebuyers are not seeing the level of interest they did a few months ago. It has also become harder to sell a property with a tenant in place.

However, the family home and upgrader markets are still quite active. Homes that are well presented and well located within a suburb are generally selling quickly and for good prices.

As a seller, you need to understand the changes to consumer sentiment.

Three interest rate rises this year have affected buyers’ borrowing power and they are being careful with their money, as they do not want to overextend themselves financially.

There is also hesitation from buyers due to commentary around two more potential interest rate rises before the end of the year.

When it comes to market conditions, after a shortage of new listings in late 2025 and early 2026, the number of new listings in Perth has returned to long-term average levels.

The median time to sell has more than doubled over the past six months. Buyers have more choice, time and negotiating power than they have had in several years.

Discounting has increased, with about one in two houses now selling for slightly less than the asking price.

This compares with one in 10 earlier this year. We are also seeing more subject to sale offers made and being accepted.

In this environment, pricing is important.

If you are selling, you need to listen to feedback from your agent and price to meet today’s market, not based on what you might have achieved earlier this year.

Good presentation has also become more necessary than it was. Buyers are being more selective and properties needing more work are less appealing.

In summary, the Perth market has changed and buyer sentiment has changed. Be guided by a local REIWA agent. And if you live in regional WA, speak to a REIWA member active in your area.