The short answer: there may be opportunity for buyers, first home buyers, refinancers, property investors and sellers right now, but for different reasons.
Perth’s property market is becoming more balanced. There is more property available for sale, homes are generally taking longer to sell than during the most competitive part of the cycle, and buyers have more time to assess properties and negotiate.
At the same time, sales activity is showing signs of improving again and Perth property prices remain strong.
That creates an interesting window.
What role are interest rates playing?
The RBA cash rate remains at 4.35%, so home loan repayments and borrowing capacity are still under pressure.
Higher interest rates can reduce the amount buyers are able, or willing, to borrow. That can reduce competition in the property market.
If interest rates eventually fall, borrowing capacity and buyer confidence may improve. But lower rates can also bring more buyers back into the market.
So there is always a trade-off:
Higher rates now may mean less competition.
Lower rates later may mean greater borrowing capacity, but potentially more competition and higher property prices.
That is why trying to perfectly time either the property market or interest rates is difficult.
A better approach is to understand your own position.
Is there an opportunity for Perth home buyers?
Potentially, yes.
More listings and slightly longer selling times can give buyers more opportunity to:
- compare properties
- complete proper due diligence
- negotiate on price
- arrange home loan pre-approval
- understand borrowing capacity
- avoid making rushed offers.
That does not mean buyers should rush into the Perth property market because prices might rise.
It means financially prepared buyers may currently have more room to make considered decisions than they did when property competition was at its most intense.
What about first home buyers in Perth?
For first home buyers, the current opportunity may simply be time to prepare properly.
Before making an offer, understand:
- how much you can borrow
- how much you can comfortably repay
- your deposit requirements
- purchasing costs
- available first home buyer support
- your home loan options
- whether you need pre-approval
- the maximum price you are genuinely comfortable paying.
Your first property does not have to be your forever home.
It needs to be a financially sensible first step.
Is there still opportunity for property investors?
Yes, but investors need to be increasingly strategic and selective.
Perth has already experienced substantial property price growth, so investors should assess much more than expected capital growth.
Important considerations include:
- rental yield
- cash flow
- interest costs
- available equity
- borrowing capacity
- property quality
- future housing supply
- vacancy risk
- how the new loan affects future investment capacity.
The question is no longer simply:
“Will Perth property prices keep rising?”
A better question is:
“Does this particular investment property make sense within my overall financial and lending strategy?”
Is now a good time to refinance a home loan?
For some homeowners, the strongest opportunity may be reviewing the mortgage they already have.
With interest rates still elevated, it may be worth checking whether your current home loan remains competitive and appropriately structured.
A home loan review may consider:
- your current interest rate
- loan fees
- offset and redraw facilities
- remaining loan term
- repayment strategy
- debt consolidation
- available equity
- plans to purchase another property.
Refinancing is not automatically the right decision.
Sometimes the best outcome is refinancing or simply negotiating with the existing lender. In other cases, it might be changing the loan structure without changing lenders.
The important thing is understanding the options.
What about Perth property sellers?
The market is also changing for sellers.
When buyers have more properties to choose from, pricing and presentation become increasingly important.
However, homeowners selling one property to purchase another should look at the entire transaction.
A slightly softer selling environment may mean accepting a more realistic price for the current property, but it may also create greater negotiating opportunity on the property being purchased.
Homeowners considering an upgrade should therefore think about:
- selling before buying
- buying before selling
- bridging finance
- available equity
- settlement timing
- borrowing capacity
- temporary repayment commitments.
So where is the best opportunity right now?
The opportunity is not necessarily to buy, sell, invest or refinance immediately.
The opportunity is to put yourself in a position where you have choices.
That means understanding:
- your borrowing capacity
- your comfortable repayment level
- your current home loan
- your available equity
- your purchasing budget
- your future plans
- your lending options.
The market will always fluctuate, but making a good property or home loan decision should always start with your own financial position rather than trying to predict the next headline.
Base Home Loans is a Perth-based mortgage brokerage helping first home buyers, property buyers, refinancers, investors and self-employed borrowers understand their lending options and build a strategy around their individual circumstances. Online mortgage appointments are also available Australia-wide.
If you are considering buying, refinancing or investing, the first step is not necessarily applying for a loan.
It is understanding where you stand.
This article contains general information only and does not constitute personal financial, legal, accounting or tax advice. Lending criteria, fees, rates and conditions vary between lenders and are subject to change. Consider obtaining independent professional advice relevant to your circumstances.
