Interest waning in housing market: REIWA

Perth home sales are down 5 per cent on the same time last year with investors and first home buyers showing weaker interest, according to new data from the Real Estate Institute of WA.

Activity rebounded by 18 per cent in May after weak April figures, but this still leaves sales down on last year.

Meanwhile, Perth's median house price fell 0.7 per cent to about $548,000.

The number of properties on the market in the three months to May was up by 16 per cent to 10,665.

REIWA president David Airey said the number of properties on the market was trending back towards Perth's long-term average.

“This is a reflection of a range of factors, but most notable is weak interest from investors and much slower activity from first home buyers," he said.

"Together this is adding to stock."

Perth's rental market was largely unchanged, with the vacancy rate continuing to hover around 4 per cent and average prices steady at $460 per week for a house and $440 per week for a unit or villa.

The cities of Swan and Kalamunda had the highest percentage of new rentals coming onto the market, with Rockingham and Kwinana closely behind.

A report by RP Data-Rismark yesterday found Perth's average dwelling value fell by 0.8 per cent in May, taking the value decline in the year to date to 1.2 per cent.

Perth is the only capital city where home values have tracked backwards in the year to date.