Winter’s chill and a growing fear of being left “homeless” have driven a sharp decline in new property listings in July, according to the Real Estate Institute of Western Australia (REIWA).
The drop in new listings, coupled with sustained buyer demand, pushed active listings to a 12-month low of 3,382 at the end of July, according to www.reiwa.com data.
REIWA president Suzanne Brown (pictured) said it was common for new listings to dip in winter, but this year’s fall was amplified by seller caution.
“We typically see the number of properties coming to market decrease at this time of year,” Brown said.
“Houses don’t always look their best in winter and it can be a lot of work to keep them looking market-ready for home opens when it is consistently rainy. So, many people choose to wait until the traditional ‘Spring selling season’ to list their home.”
She said the fear of being temporarily without a home was deterring many potential vendors.
“Our members are saying the fear of being without a home is exaggerating the seasonal decline in new listings, with potential sellers hesitant to put their properties on the market,” Brown said.
“People often talk about the challenges facing buyers, but sellers are between a rock and a hard place at the moment.”
Brown noted the financial and logistical hurdles facing sellers in deciding whether to buy first or sell first.
“If they choose to buy a new home before selling their own, there may be financial implications, such as paying two mortgages until their home sells,” Brown said.
“Selling first gives you the advantage of being able to make an offer for cash or with a small finance component, but it then leaves you with the issue of having to find somewhere to live, potentially in a short timeframe.”
The slowdown in new listings comes as the national market looks to the Reserve Bank’s (RBA) next move. With annual inflation falling to 2.1% in the June quarter – the lowest since 2021 – and unemployment ticking up to 4.3%, economists and major banks widely expect a 0.25% rate cut in August, with another likely by November.
This looming easing cycle is expected to reignite buyer activity, particularly if lower borrowing costs unlock pent-up demand from cautious winter sellers.
The mismatch between supply and demand is fuelling price growth in Perth.
“The number of sales significantly outpaced new listings in July and the growing imbalance between supply and demand has increased the upward pressure on prices,” Brown said.
Sales were strongest in the $600,000 to $800,000 range, with a resurgence of east coast investors and buyer’s agents in some pockets.
Top-performing suburbs for house price growth in July:
Fremantle, Como, Bullsbrook, Falcon, and Warnbro also saw monthly growth of 1.5% or more.
Perth houses sold in a median 12 days in July – one day faster than June, but three days slower than July 2024.
Units matched the 12-day median, also one day quicker than the prior month.
“Members report homes that don’t need any work are selling faster and getting better price outcomes than those that do,” Brown said.
Fastest-selling suburbs for houses:
Rental conditions remain tight, but price growth is easing.
“The biggest change over the past 12 months has been the rate of growth,” Brown said.
“The upward pressure on prices has been easing as a result of an increase in supply and changes to demand, such as an increase in the size of tenant households.”
Top suburbs for rent growth in July:
Rental stock remains limited: 2,358 properties were available at the end of July, down 2.1% from June and 5.7% from July 2024.
Median leasing time hit 17 days, slightly slower than June but faster than a year earlier.
Fastest-leasing suburbs: Coolbellup, Leederville, Nollamara and Yanchep (11 days); Mindarie, Subiaco, Wembley, Banksia Grove, Butler and Success (12 days).
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