If you’re buying in Perth this spring, the market you’re stepping into looks different from the last few years. Spring is usually the busiest stretch of the property calendar — gardens are at their best, open homes are easier to run in good weather, and plenty of families want to be settled before Christmas and the new school year. This year, though, the spring selling season is shaping up differently — and it’s worth understanding why before you start (or restart) your property search.
A softer market nationally
Nationally, housing conditions have cooled. Properties are taking longer to sell, and home values have recorded consecutive monthly falls. High mortgage rates, tighter borrowing capacity and ongoing cost-of-living pressure are all weighing on buyer sentiment, and economists are widely tipping the Reserve Bank to lift the cash rate again in September or November.
Perth has held up better than most of the eastern capitals through this cycle, but the same borrowing-capacity pressures apply here too. A softer national backdrop and the prospect of another rate rise both point to one thing: buyers who understand exactly what they can borrow, and lock in a strategy early, are the ones best placed to act when the right property comes up.
More stock overall, but fewer fresh listings
In the four weeks to 30 August, total capital city listings were running around 24% above the same time last year and roughly 8% above the five-year average, as buyer demand eased over winter and homes sat on the market longer.
What’s notable is the other side of that figure — the flow of brand-new listings actually slowed. New listings were down about 6% on a year ago and 8% below the five-year average as winter wound down. Put simply, there’s more stock sitting on the market, but fewer new properties are being added to it each week. Some vendors appear to be waiting for conditions to firm up before testing the market, which means this spring’s usual surge of fresh listings may be more muted than in past years.
Investors are sitting on their hands
Investor activity has pulled back noticeably. Following successive rate rises and the Federal Government’s changes to negative gearing and capital gains tax settings, ABS data shows the total value of new home loans fell 5.4% in the June quarter — driven largely by an 8.6% drop in investor lending.
Fewer investors competing for the same stock is a meaningful shift for owner-occupiers, and particularly for first home buyers who’ve often found themselves outbid in Perth’s more affordable, high-growth suburbs over the past couple of years.
What this means for first home buyers
This is the part of the cycle first home buyers should pay closest attention to. Less investor competition, more overall stock to choose from and homes sitting on the market longer all shift the balance back in your favour — particularly in the Joondalup-to-Yanchep corridor, where investor activity has been strongest in recent years.
The catch is that borrowing capacity is tighter than it was, so the buyers who benefit most are the ones who go in prepared: pre-approved, clear on their budget, and not scrambling to work out their numbers the week they find a property they like. We’ve put together a First Home Buyer Guide that walks through exactly that — deposit requirements, government grants and concessions, and how to get finance-ready before you start inspecting.
Download the Fox Mortgages First Home Buyer Guide to get started.
What this means if you’re planning to buy
Put those trends together — more overall stock, a slower flow of new listings, and investors on the sidelines — and this spring could genuinely favour buyers more than the last few have. Homes taking longer to sell means less pressure to make a snap decision, and more room to properly research a suburb, attend multiple inspections, and negotiate on price or contract terms rather than compete in a bidding war.
Affordability is still the sticking point for a lot of buyers, and that hasn’t gone away just because conditions have softened. The buyers who benefit most from a slower market are the ones who’ve already done the groundwork — they know their borrowing capacity, they’ve compared lenders, and they’re ready to move the moment the right property is listed.
Let’s map out your borrowing position before you start looking
If you’re planning to buy this spring — whether it’s your first home, a refinance, or you’re looking to use equity to move again — get in touch with the team at Fox Mortgages. We’ll walk you through your borrowing capacity, compare options across our panel of 30+ lenders, and help you get genuinely finance-ready before you start inspecting.
Fox Mortgages is a Credit Representative (483820) authorised under Australian Credit Licence 389328. The information in this article is general in nature and doesn’t take into account your personal objectives, financial situation or needs. It isn’t legal, tax or financial advice — please seek professional advice tailored to your circumstances before making a decision. Lending is subject to lenders’ terms, conditions, fees and eligibility criteria.