Is the dream still alive? Navigating WA’s housing market as a first home buyer

Buying a house is harder than it used to be, but the stats show it’s not an insurmountable task.

Strong price growth over the past year means buying a first home has become more challenging, with some first-time buyers expanding their search to other suburbs or opting for more affordable townhouses or apartments.

Still, according to Australian Bureau of Statistics (ABS), first home buyers made up 35.1 per cent of loans in the December 2024 quarter.

Additionally, changing market conditions have seen the number of properties advertised for sale in Perth increase, up 41.5 per cent year-on-year in March to 5,082 listings. There was a surge in new listings in October and November and consistent volume of listings since then.

Population growth has also slowed which has seen an easing in ‘FOMO-fuelled’ demand.

REIWA President Suzanne Brown said these changes are improving the landscape for buyers.

“First home buyers now have more choice, and with homes taking slightly longer to sell and fewer properties selling at the first home open, they can take more time in their purchasing decisions,” Ms Brown said.

“The median time to sell a house has increased to 13 days from nine a year ago.

“There is still strong demand for property, but not at the levels it was a year ago.”

The breathing room is welcomed news, especially considering how tough it is to save a deposit. With Perth’s median house price up 20.7 per cent in the past year to $766,500, it now takes an average of nearly 10 years to save a deposit, according to ANZ. Interest rates and stamp duty only add to the financial strain.

Stamp duty, in particular, has been a sticking point. In a recent REIWA survey, 63 per cent of the 15,000 respondents viewed it as a significant barrier to home ownership. The good news? The re-elected WA Labor Government has responded with increased thresholds.

“This would save a first home buyer nearly $18,000 on a property valued up to $500,000,” Ms Brown said.

So how can prospective buyers prepare?

• Start by saving the amount you expect to repay on a mortgage. This builds discipline and shows lenders your financial habits.

• It sounds obvious but don’t leave your finances to the last minute. Before you start to hunt for a property, make sure you have a clear idea of what you can afford.

• Get pre-approval early. It gives you a clearer budget and shows sellers you’re serious.

• Avoid overloading offers with conditions — it can weaken your negotiating power.

• Be realistic about settlement timeframes. If you’re waiting for finance approval, delays can happen. Allow at least six weeks for paperwork and approvals.

• Attend home opens and use tools like reiwa.com to compare suburb data — prices, growth, rent returns and amenities.

• Buying a strata property? Review Body Corporate AGM minutes and financials — especially the reserve fund, which covers future maintenance of shared areas.

• For some, buying an investment property while renting where you want to live can be a savvy way to get on the ladder. Just make sure you speak to local agents to understand rental demand and what tenants are looking for, and that your budget accounts for costs like:

1. Interest rate increases
2. Vacancies
3. Ongoing maintenance and repairs

• You might also be eligible for government support, including the First Home Owner Grant, the First Home Super Saver Scheme (FHSSS), or Keystart — a WA program helping more people into home ownership.
• If your dream suburb is out of reach, consider nearby ‘bridesmaid suburbs’. There are still bargains to be found: Orelia, Medina, Midland and Armadale offer houses well below the Perth median. For unit buyers, Orelia’s median price is just $315,000.

“Before deciding on the type of dwelling and suburb, buyers should ask themselves how long they plan to live in the home, how far they are willing to travel to work, and if they see themselves starting a family there,” Ms Brown said.

“A first home is often a stepping-stone along the home ownership path, not the final destination.”

While the path to home ownership may look different than it once did, for many first-home buyers in WA, the dream is still very much alive — it just takes a little extra strategy, flexibility and support to get there. For more information like this, visit REIWA.