One in three homes in WA selling below listing price as property market slows, new data shows

The housing slowdown has seen three in 10 homes sell at a discount on the listing price, according to new data from the Real Estate Institute of WA. It is an increase from the one in 10 homes to sell at a discount on the listing price during the frenzied property boom of late 2025 and the first quarter of 2026. REIWA president Suzanne Brown said it was a reflection of changes in the market, including few investors since changes in the Federal Budget, and a cap on borrowing power after three interest rate increases. “There have also been noticeable changes to demand following the Federal Budget. While the changes have prevented a mass exodus of investors from the market, they have deterred potential investors, with our members reporting a clear drop in investor enquiry post-Budget,” she said. Of those sales that were discounts, the average difference between the listing price and sale price was 7.5 per cent. This is up from the 6.3 per cent difference in the first three months of the yer. The homes that are selling above their listing price are also enjoying less of a fillip, currently earning one per cent above the asking price, instead of the 6.5 per cent extra that homes attracted in the first three months of the year. It comes as one property analyst claims house prices in Perth dropped in June by 0.5 per cent, or about $5000. Real estate analytical firm Domain claims Perth median dwelling prices fell a total of 1.2 per cent from their peak, swiping about $12,000 from the median price, and taking it to $1.01 million. It said Perth and Sydney led the nation of price drops. Annually, house prices grew 17.3 per cent, slightly outpacing local unit price growth, which was up 16.6 per cent over the year. Domain said regional WA home prices held flat in June, maintaining a median value of $671,000. “Home prices softened across every capital city in June, bar Darwin, as higher interest rates and cost-of-living pressures continue to weigh on purchasing power,” the report said. “The Budget may have also contributed to more cautious decision-making among both owner-occupying buyers and investors.” But in a sign of the unusual times, real estate analyst Cotality, which uses a separate method to analyse house prices, claims Perth house prices jumped 0.7 per cent in June, taking the median dwelling price to $1.046m. Property commentator Gavin Hegney said the market is in flux, as different segments respond to different stimuli, with some sectors increasing as other fall.