Housing prices in Perth fell 5.7% over three months — ABC News Australia

In Perth, Australia, the median home value has fallen by 5.7% over the past three months, to $942,018. This is almost $100,000 less than at the peak in April, when the figure exceeded $1 million, ABC News Australia reports.

Forecast of further decline

According to data cited by the outlet, Australia is heading toward its biggest housing market downturn in 40 years. Research group Cotality recorded a decline in Perth's median home value. At the same time, Commonwealth Bank economists updated their forecast and expect house prices in the city to fall 18% from their April peak, after which they may begin to stabilize in the second half of 2027.

For Vanessa Bray, who has been looking for a home for herself and her sons for four years after separating from her partner, the weakening market has given cause for optimism. She is looking for a family home within her children's school district and must stay within the $850,000 limit required to participate in the state government's Help to Buy program.

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Buyers have become more selective

Real estate agent Kyle Peters cautioned that the optimism of potential buyers may be premature. In his view, the current figures do not fully reflect the state of the market, as the country still has a housing shortage.

REIWA president Rob Mandonici said that even without further price declines, the market slowdown gives buyers more time to make a decision. According to him, buyers have not disappeared from the market but have become more selective. He also stressed that prices in a number of Perth suburbs are declining after a period of high figures.

On Tuesday, the Reserve Bank of Australia raised the cash rate by 0.25 percentage points, to 4.85%, the highest level since 2008.