Cheaper property prices are luring back first homebuyers who were priced out of the Perth market at the height of the boom, according to the Real Estate Institute of Western Australia (REIWA).
With the median house price in Perth dropping by 4.1% to $460,000 between March and June, buyers are now paying $16,000 less compared to the March prices.
"Perth has experienced an overall slump of around $31,000 in the median price since the beginning of this year, and the June quarter shows that this slump is found right across the metropolitan area and also that the regions have gone backwards a little, too," Rob Druitt, REIWA president, said.
"The good news is that first homebuyers have been very active. They normally account for around 20% of the market, but they are taking advantage of stamp duty reform and falling house prices to jump back into the market. Indications are that they now constitute around 30% of total buyers."
Rental vacancy rate has also returned to a comfortable level for the first time in several years, with REIWA recording a comfortable 2.8 % vacancy rate.
Druitt said this shows that many properties have flooded into the rental system as investors and owners now find it a difficult time to sell.
"For the first time in several years, tenants should now find it much easier to find a suitable home. There is much more stock available and much more competition among owners to secure good tenants," Druitt said.
However, REIWA said rents increased by around 3% in the June quarter, lifting by $10 per week for houses to a median of $350 per week, while units rose by $10 per week to a median of $320 per week.