Perth first home buyers get their best shot in years as listings surge and prices stall

Perth was the only major capital city to hold onto a positive result in the latest Cotality home value figures for July, but only just. Values edged up by roughly 0.1% over the month, a sharp change of pace after two years of some of the fastest annual growth anywhere in the country. At the same time, the number of homes on the market in the Perth area is now running around 28% higher than a year ago. For first home buyers who spent 2024 and 2025 missing out in a scarce, competitive market, that combination is worth paying attention to.

The boom is stalling, not stopping

After two years of double-digit annual growth, Perth's monthly numbers are now oscillating close to zero rather than compounding upward the way they did through the boom. That does not mean values are falling in any dramatic way. It means the market has moved from buyers chasing scarce stock to something closer to balance, where sellers can no longer assume a listing will attract a bidding war within days.

Analysts covering the market describe the shift as the next phase being defined by slower growth and periods of flat performance, rather than the compounding gains of the past two years. Higher borrowing costs after recent interest rate rises are a likely factor behind the change, since affordability and loan serviceability have tightened for buyers at the more accessible end of the price range, which is exactly where many first home buyers are shopping.

More listings means more room to negotiate

The listings jump is the more practical part of this story for buyers. Total stock on the market has been recovering steadily since early 2026, driven by both a rise in new listings and homes taking longer to sell. Where inventory once competed for scarce buyers in Perth's boom years, the roles have reversed. Buyers now have the widest selection available in this market since before the run-up began.

• More choice, less urgency: a wider pool of listings means a first home buyer can compare several properties instead of feeling pressured to make an offer on the first one that fits the budget.
• Softer competition at inspections: with fewer buyers chasing each listing than during the boom, there may be more scope to negotiate on price or settlement terms.
• Values are not falling everywhere: a flat or slightly positive market is different from a downturn, so this is not necessarily a signal to wait for prices to drop further before buying.

What this means for first home buyers in WA

A market with more listings and steadier prices can be a genuinely useful window for buyers who found the 2024-2025 conditions too competitive to act in. It is still worth approaching with a clear budget and a realistic view of borrowing costs, since a further rate rise could affect what a lender is willing to approve.

• Use the extra listings to compare properties across a few suburbs rather than settling quickly, since buyers currently have more negotiating leverage than at any point during the recent boom.
• Get a clear read on your borrowing capacity before you start inspecting, including how it may be affected by a further interest rate increase, so you are shopping within a realistic price range.
• Factor stamp duty and other WA first home buyer concessions into your budget early, since eligibility and thresholds vary by property price and whether the home is new or established.
• Speak with a mortgage broker or lender about current loan options, who can walk you through how a flatter market and today's rates might affect your application.

Run the numbers

These tools can help you work out what a Perth purchase might look like for your own budget before you start inspecting:

• Borrowing Power Calculator - see an estimate of what you may be able to borrow at current interest rates.
• Am I Ready to Buy? - check whether your deposit, income and expenses stack up before you start house hunting in a market with more choice.
• Stamp Duty Calculator - estimate your stamp duty and see which first home buyer concessions could apply in Western Australia.