Perth’s property market has shifted over the past three months. According to the Real Estate Institute of Western Australia, the median time to sell a house rose to 14 days in May, up from nine days in February. Listing volumes have also grown month-on-month, up 16% in May, according to SQM Research.
For buyers who have spent the better part of the last two years racing against every other bidder in the room, it feels like the pressure may finally be easing.
But this is not a downturn, and reading it as one could be a costly mistake.
What has changed?
Three consecutive interest rate rises this year have cooled sentiment among buyers. According to the June 2026 Westpac-Melbourne Institute Consumer Sentiment Index, homebuyer sentiment is lowest in Western Australia, with the index at just 59. For comparison, buyer sentiment is in the 80-86 range across most other states.
With fewer people chasing each property, those buyers who are active are facing less pressure to make snap decisions.
In practice, this translates to more choice, a greater chance to negotiate and more room to conduct proper due diligence before committing. For buyers who felt locked out of the market during the frenzy of early 2025, the shift is noticeable.
Is Perth’s market in a downturn?
When buyers see selling times lengthen and listings rise, the instinct is often to wonder whether a price correction is coming. It is a reasonable question – particularly given the state of some other markets around the country – but the data in Perth does not support it.
Perth prices are still rising faster than anywhere else in the country, up 25.8% in the 12 months to May, according to Cotality. The structural drivers underpinning the market, including sustained population growth, strong interstate and overseas migration, a tight rental market and a chronic shortfall in housing supply, have not changed. The only thing that has changed is the pace and intensity of competition.
The risk is that buyers mistake this breathing space for a signal to wait. Those who sit on the sidelines hoping for prices to fall may find themselves waiting through another tightening cycle instead. Perth’s supply shortage is not going to resolve itself quickly. Even with the WA Government’s $4.7 billion housing commitment in the 2026/27 Budget, this will likely take years to flow through to the market. In the meantime, well-located homes in established suburbs continue to attract serious interest.
What does this mean for buyers acting now?
In early 2026, buyers were making decisions in days, often under pressure and rarely with room to negotiate. Conditions now are different. The buyers who tend to achieve success in a market like this are not the ones who wait for prices to fall. They are the ones who recognised a window and used it well, taking the extra time and choice to select carefully rather than chasing properties under pressure. A more balanced market rewards that kind of discipline.
But it’s also important to remember that Perth’s fundamentals have not changed, and the window may not stay open for long.
Looking to buy a property in Perth? As an expert Perth buyer’s agent, Resolve Property Solutions can help. To discuss your options, book a free discovery call and we’ll connect you with one of our expert buyer’s agents.
