May market wrap…

The effect of this year’s rate cuts and predicted future cuts are having an apparent effect with every capital city recording a rise in value during the month of May. According to CoreLogic, national home values rose by 0.5% last month culminating in a 1.7% increase for the first 5 months of the year. However, this short-term growth does not reflect that fact that the annual value index rose just 3.3% to the end of May, the slowest rate of growth since the year ending August 2023.

According to CoreLogic, Perth’s median dwelling value grew by 0.7% in May. This brings Perth’s rolling quarterly growth to 1.6% and 8.6% for the 12 months to Mays end, down from 10% recorded over the 12 months to end April.

REIWA reported 4,251 properties listed for sale across Perth at the end of May, a 10.77% decline from April and the lowest number since September 2024. Despite the drop in listings, this number remains significantly higher than last year, up 30% compared to the same week in 2024. Sales activity for the last week of May jumped significantly from Aprils’ end with transaction volumes increasing by 94% month-on-month. Despite the sharp increase, 1,007 sales for the week are more reflective of numbers from March and February this year indicating April was an outlier.

Prices in the City of Melville continued its upward trend in May as reported by REIWA. A 1.17% increase in the monthly median house price was recorded, which took the median price to $1,386,000. Listing volumes dropped slightly, with 197 properties available at month’s end. Sales activity, however, increased by 25.2%, with 154 properties sold in May, this highest number of sales we have seen since May 2024.

Across our core local suburbs, listings declined by 2.21% from the end of April, mirroring the broader trend across Perth. Ardross, Attadale, Bicton, and Myaree all recorded a drop in available stock, while Applecross and Mount Pleasant saw increases. Alfred Cove, Booragoon and Melville remained steady with no change in listing volume.

The prediction of stabilisation for the Perth market in the near term appears unclear for now with April and May giving very mixed signals. The rental market remains at a stable level so it will be interesting to see how the remaining balance of power and influence plays out amongst; population growth, interest rates, supply/demand and consumer sentiment. All my previous market predictions for the next 6 months are now off the table, we will have to see how the next month or two plays out.