14/10/2026
It's our favourite Wednesday of the month, when David Snell pops into Sonshine 98.5FM to update listeners on all things real estate and answer their questions too!
Today's Perth Property Update is below, in case you missed the segment:
Let's talk about where the Perth market is right now, because there's a lot of noise out there and I want to give you the real numbers.
Where prices are at
The median house price in Perth is now around $965,000. That's up 17.7% on this time last year — and up a whopping 85% on five years ago.
Now why does that matter? Because it means the market has a big cushion. Even if we see a correction, most owners are sitting on a huge amount of growth. This market can weather a bit of a storm.
The market has slowed
Here's what's changed. Listings across Perth metro have more than doubled since March. We're now looking at well over 7,000 homes for sale — up around 150% on a year ago.
And homes are taking longer to sell. Time on market has blown out to around 23 days. Not long ago it was seven.
Now, that's not necessarily a flood of people rushing for the exit. It's more that properties are sitting on the market a bit longer, so they pile up.
Investors are retreating
On the rental side, there were 1,914 rentals available at the end of September. That's down 5% in a single month, and down nearly 9% on last year.
In other words — investors are leaving. And that has a knock-on effect. If you're selling a home with a long-term tenant in it, it's harder now, because the investor buyers just aren't there like they were.
But here's the thing: for the investors who stay, the outlook is strong. Rentals are still leasing in about 14 days. We're seeing big crowds through rental home opens, and there's no relief in sight. Rents can keep rising.
Interest rates
September brought another rate rise. On the average WA mortgage of around $720,000, that's about another $118 a month.
And if you add up all four hikes, on a $700,000 loan, repayments have gone from roughly $4,000 a month to around $4,400-plus. That's real money for families.
And to put it in perspective — the last time the typical home loan rate was around 6.5%, like it is now, was 2011. Fifteen years ago. The big difference? Back then, loans were half the size they are today.
And the banks aren't promising relief. ANZ reckons another hike in November is more likely than not, and the Commonwealth Bank says the economy is tilted towards further increases.
On top of that, there's a brick shortage, so builders are taking longer to finish homes.
So — is this bad news? Not for everyone.
Some people see pain. I see opportunity — especially for buyers.
When the market's slow, you've got time, you've got choice, and you've got negotiating power. My saying is: when the market slows — act and go.
And another one I like: buy more than you can chew, then chew like crazy. Why? Because if you're buying a forever home, you're paying it off over decades. There'll be many years of capital growth ahead — and property values tend to rise at about twice the pace of inflation.
And of course, my old favourite: smart people sell in boom and buy in gloom.
First home buyers are clearly getting the message. In the past year, more than 11,000 first home buyers in WA spent around $6.6 billion on property.
A word on negative equity
Now, negative equity can worry first home buyers. But here's the truth — negative equity on its own isn't what hurts you. It only hurts when it's combined with a forced sale.
Warren Buffett, one of the richest people on the planet, was once asked how he felt watching his shares drop. His answer, more or less: it only hurts if I sell. If I don't sell, I haven't lost anything.
