Perth property: Summer scramble for a home as market dries up with properties for sale at all-time low

Perth’s evaporating pool of houses and units for sale has plunged to a new record low. Across Greater Perth, there were just 1881 listings at the end of last month — 1148 houses, 409 units and 324 parcels of land. The latest figures from the Real Estate Institute of WA showed listings for sale were 4,395 at the same time last year. The number of houses on the market at the close of 2025 was 59 per cent down on 12 months earlier and 84 per cent down from six years ago. The mad scramble for the dwindling number of available properties was pushing up prices and making them further out of reach for younger West Australians. “If current conditions continue into 2026, we could see price growth over 10 per cent. However, if we get several interest rates increases, demand may ease slightly,” REIWA boss Suzanne Brown said. “We saw FOMO (fear of missing out) return to the market, with our members reporting strong competition for homes, offers well over the asking price in many cases, and homes selling in record timeframes.” Houses and units sold in a median of just nine days in December — seven days faster than a year ago — and they were being snapped up more quickly in the most in-demand areas. Houses in Parkwood, for example, were selling in three days. Warnbro (four), Girrawheen, Waikiki, Dayton (five), Nollamara, Kingsley, Kelmscott, Brabham, and Bibra Lake (six) were also red-hot. “Historically, active listings decrease in December,” Ms Brown explained. “People are busy with the festive season, or go away, and put their plans to sell on hold ... However, new listings have been significantly below long-term averages in the last six months. “By comparison, demand remained extremely high. The imbalance between supply and demand is putting upward pressure on prices.” Real estate agent Shane Beaumont said it was not unusual for a three-bedroom, one bathroom house in Gosnells to sell for between $750,000 to $800,000, with eastern states investors and local buyers swarming to snap up what what was available. “I’ve got seven listings in Gosnells. If I compare it to 2008, I would have had 40 listings,” he said. “People don’t want to sell. They are getting double digit growth and good returns. “In Gosnells alone, if a property is correctly priced and marketed correctly, you will be competing with between seven to 20 offers. It’s never been like this.” Accountant Reihaneh Kargar is among those missing out, having tried to buy since 2020. She has been trying to buy a home since 2020 and says the competition has created strain. “It’s a mental strain like no other,” Ms Kargar said, adding higher prices mean her pool of options has shrunk. “I feel like there’s no point going to home opens anymore,” she said. “There are lines of people out the door, everybody is flighting for such a small number of properties available, and I just don’t like my chances.” Former REIWA boss and now head of Momentum Wealth Damian Collins agreed. “For the market to return to balance, we’d need at least 13,000 properties for sale,” he said. “Given our population growth and building industry constraints, barring a major economic downturn there is no chance we can get back to balance for years. “Simple supply and demand tell us that prices will continue to rise and I’d expect at least another 10 per cent price growth in 2026.” Ms Brown said homeowners were holding onto their properties because there was nowhere for them to go — creating a logjam in the market. “People want to sell, but with the speed of sales and relatively low availability of homes, they are concerned about finding somewhere to live,” she said. “They don’t want to be rushed into buying a new home, and it still remains challenging to find a short-term rental, especially if you need to remain in a certain area for work or schooling reasons.” Agent Mark Snelson, who services the Ellenbrook area, said prices the median house price for a four-bedroom, two bathroom home there was now about $900,000. “In 2022, the median price (for a house in Ellenbrook) was $500,000,” he said. Ms Brown said the high cost of moving home was another deterrent for would-be sellers. “People who already have a home may be able to get a very good price for it if they sell, but upgrading to a new home is still very likely to see them extend their mortgage by several hundred thousand dollars,” she said. “The cost of stamp duty on a new home adds to financial considerations. “Interest rate increases are always a concern, particularly if you will need to extend yourself financially to buy a new home, but this isn’t a major factor at this point.” Ms Brown said there needed to be more incentives for owners to downsize. “There are many potential downsizers living in family-sized homes which are simply too big for their needs, and it’s these types of homes that are very sought-after by buyers,” she said. “REIWA has called for a $10,000 stamp duty concession for eligible downsizers in the 2026-27 State Budget to help encourage some much-needed mobility within the market. “In addition, feedback from downsizers is they would like to stay in their local area, but there is a lack of suitable homes, such as villas and townhouses. “Anecdotally, many indicate they would prefer medium density options, rather than apartments.” The new figures don’t just spell bad news for aspiring home owners. Those looking for a home to rent were facing fierce competition with just 1716 properties available for rent on at the end of December — almost a quarter down on November. On average, homes were leased in just 16 days when they came to market. The median weekly rent for a house in Perth was now $700 a week, up from $370 six years ago. There was also staggering demand with 23,168 people on the public housing wait list. The average wait time was now 99 weeks. Anglicare boss Mark Glasson said WA’s under privileged were paying for years of social housing under spend. “Our enviable surplus can also be used to address decades of underspend on social housing that has fed today’s problem, by creating a WA Housing Future Fund that enables a pipeline of housing for decades to come,” he said. WA Housing Minister John Carey insisted the Government was laser-focused on accelerating supply. “The Cook Government has rolled out a record $6.3 billion housing spend since 2021,” he said. “Recently announced measures include the establishment of station precincts to supercharge apartment construction near train stations, a new $50 million Housing Innovation Fund to boost modular and alternative construction, and an expression of interest process for an advanced manufacturing facility to build more modular housing. “Our expansion of low-interest loans through Keystart focuses on new apartments and townhouses, helping more people into their first homes while boosting supply.”