Despite a slight decline in affordability, Western Australia remains a compelling location for homeownership. While rising house prices have impacted affordability, strong demand and limited supply continue to fuel the Perth market.

Loan Activity Up Despite Affordability Changes

WA homebuyers are demonstrating continued confidence, with loan activity increasing by 13% in the June quarter. Notably, first-home buyers remain particularly active, representing over 38% of the owner-occupier market. This suggests a healthy pipeline of future homeowners entering the market.

WA: A Top Choice for First Home Buyers

WA stands out as one of the most affordable options for first-time buyers, with an average loan size significantly lower than other states. This accessibility is crucial for fostering future market growth.

Rental Market Shows Signs of Stabilization

Rental affordability saw a minor decline but appears to be approaching a stable point. This stabilization is likely due to a combination of factors, including increased rental supply and shifting tenant demographics.

WA: A Middle Ground for Renters

WA continues to offer a balance for renters, sitting in the middle of the national affordability spectrum. While some states see more affordable rents, WA avoids the high costs experienced in others.

Overall Perspective

The Perth market faces an adjustment in affordability, but strong demand and increasing loan activity point towards a resilient market. First-home buyers remain active, and the rental market shows signs of stabilizing. WA continues to be a competitive and attractive location for both homeowners and renters.