Shellabears Blog

Perth Market Momentum: Buyers Making Their Move

The conversation around interest rates continues to set the tone for buyer behaviour. With expectations that rates will trend down over the coming year, many buyers are bringing their purchasing decisions forward. It’s not just optimism driving the market either. Savvy purchasers, particularly owner occupiers, are already factoring those future rate cuts into what they’re willing to pay today.

We’re seeing this play out at opens and in negotiations. Confidence remains at very high levels, and buyers are more prepared to stretch a little further knowing the cost of money is likely to ease in the months ahead.
​​​​​​​
First Home Buyers Turning Up the Heat

First home buyers are also out in force. The Federal Government’s assistance packages are helping buyers purchase up to $850,000, giving many a valuable leg-up onto the property ladder.

But as with all demand-side policies, when everyone gets the same advantage, the impact is familiar – more competition and upward pressure on prices. We’re already seeing strong activity in the sub-$900,000 bracket, and that’s unlikely to slow any time soon.
​​​​​​​
Supply Still the Missing Piece

On the other side of the equation, supply remains incredibly tight. Approvals are at dismal levels, the release of new land is slow, red tape continues to pile up, and the shortage of trades is adding further pressure. Combine that with the sheer time, cost and emotional energy required to get a house built, and it’s easy to see why supply is struggling to keep pace with demand.Insert blog content here.

Below is a chart from Colality highlighting the significantly lower number of listings coming to market compared to this time last year. Perth, as a whole, is down 16.9% from this time in 2024.