The Perth housing market is booming, with median house prices reaching $777,921—a nearly 20% increase in just 12 months. For buyers, this means navigating a highly competitive seller’s market where demand outstrips supply. Financial adviser Jovan Cvetkoski shares expert strategies to help buyers stay ahead and make informed decisions.
Why are house prices rising in WA?
Several key factors have contributed to Perth’s soaring property prices:
- Strong demand: WA is experiencing net migration from other states and overseas, fueled by a robust economy.
- Limited housing supply: Perth has seen the biggest decline in available homes across all capital cities in the past year. High building costs and a construction skills shortage have further tightened supply.
- Catching up to other cities: Unlike Sydney and Melbourne, Perth’s prices remained relatively stable pre-COVID. The current surge is partly Perth catching up with national trends.
What defines a seller’s market?
A seller’s market occurs when demand outweighs supply, giving sellers more negotiating power. Perth currently exhibits all the key indicators:
- Fast home sales: The average days on market (DOM) is now just 10 days, down from 15 days a year ago; compared to a national average of 30 days.
- Rising prices: Many homes are selling above the asking price due to intense competition.
- Limited listings: There are 23% fewer homes for sale compared to this time last year.
- Increasing rents: Rental prices in Perth have jumped 14% in the past 12 months, indicating ongoing housing shortages.
How can buyers compete in a seller’s market?
Jovan Cvetkoski, an experienced financial adviser, recommends the following steps for buyers looking to secure a home in a competitive market:
1. Get mortgage pre-approval
A pre-approved mortgage strengthens your position as a buyer. Sellers prefer buyers who have secured financing, as this reduces the risk of delays or failed settlements.
2. Make your best offer first
Rather than lowballing and negotiating, put forward a strong initial offer. Perth’s housing market is moving quickly, and in many cases, there’s no second chance to bid.
3. Keep your offer simple
The fewer conditions attached to your offer, the more attractive it becomes. An unconditional offer at the same price as another conditional offer will likely be favoured by the seller.
4. Broaden your property search
With prices rising rapidly, some suburbs may no longer be within budget. Consider alternative areas that offer similar benefits but haven’t yet experienced peak price growth.
5. Work with a buyer’s agent
A professional buyer’s agent can identify properties, negotiate effectively, and help you secure a home without the stress of competing against multiple buyers.
6. Stay alert to new listings
Set up email alerts and regularly check listings to avoid missing out. The market is moving fast, and being proactive is key.
Will house prices keep rising?
Market forecasts suggest continued price growth in Perth:
- Oxford Economics predicts a 30% increase by 2027.
- National banks estimate prices will rise 21% over the next two years.
- If these forecasts hold, the median house price in Perth could exceed $1 million.
Get expert financial advice before you buy
Buying in a competitive market requires careful financial planning. Jovan Cvetkoski, a trusted financial adviser, helps buyers assess affordability, navigate market trends, and help match buyers to suitable finance brokers.
For expert financial advice on property investment, contact Knight today to make informed and strategic decisions in Perth’s evolving real estate market.
