The number of Perth sellers discounting their houses has increased in the last three months, according to new research from REIWA.
Three in 10 houses sold for less than their listing price in June, so far.
REIWA President Suzanne Brown said it was a shift from the one in 10 sales recording discounts during the frenzied conditions seen in late 2025 and early 2026.
"This is a reflection of the changes we are seeing in the market," she said.
"After a shortage of new listings in the second half of 2025 and the first quarter of this year, properties have been coming to market in reasonable numbers since late March.
"This has eased the supply side of the supply and demand equation, giving buyers more choice.
"There have also been noticeable changes to demand following the Federal Budget. While the changes have prevented a mass exodus of investors from the market, they have deterred potential investors, with our members reporting a clear drop in investor enquiry post Budget.
"Interestingly, these changes were supposed to improve things for first home buyers, but in my experience, they too have taken a step back. Potentially they are concerned about stories of falling prices from the east coast and the threat of negative equity.
"From a first home buyer's point of view, they shouldn't be concerned. If they plan to live in their home for some time, it should not be an issue."
Of those sellers that were discounting, the average difference between the listing price and sale price was 7.5 per cent.
"This isn't a significant change from the average discount of 6.3 per cent recorded in the March quarter," Ms Brown said.
"However, where we have seen the biggest change in the market is in the overall average of the difference between the listing and sale price.
"70 per cent of houses have sold for at or over their listing price in June, but the average difference between listing and sales price has dropped from +6.5 per cent in the March quarter, to +1.0 per cent.
"This change does not suggest prices are falling, but more that we are seeing the market stabilise and the rate of price growth slow.
"It reflects the increase in the number of new listings and decline in demand, which has reduced the competition for available properties and eased the significant upward pressure on prices.
"Three interest rate increases since the beginning of the year have also had an impact. They have reduced buyers' borrowing capacity and, therefore the amount they can offer for a home.
"I will note that this data and my commentary relate to Perth as whole. Conditions vary from suburb to suburb, and sellers should speak to a local REIWA agent about market activity in their area."
