Perth’s housing market might be ‘healthy’, but first-home buyers like me are getting sick of it

“Don’t believe the front pages, this housing market is healthy!”

That’s the message our auctioneer is trying to sell, alongside a property, in Perth’s northern suburbs over the weekend.

I can’t help but share a disbelieving look with my partner as we stand, paddle at the ready, holding a free coffee from a van set up in the driveway.

As someone who has written some of those “front pages”, it was difficult to reconcile what she was saying with the countless reports from leading bodies and personal stories from those struggling, on what many are quick to label as a housing market in crisis.

Bidding starts at $800,000. As first-home buyers, we are utilising the federal government’s 5% Deposit Scheme meaning we, and many around us, tap out rather quickly from there.

Two families are left one-upping each other, urged on by the auctioneer, but eventually, one gives in.

The hammer goes down on a final bid of $980,000 – more than the market value listed online for the property.

The woman who made the bid turns to her family and begins to cry.

A healthy market indeed.

Auctions aren’t common in Western Australia, unlike over east, and I’m grateful for it. From my limited experience, it seems they benefit sellers far more than buyers.

But regardless of the process, it’s a tough market to crack, particularly for first-home buyers.

And now we’re back to the doom and gloom headlines (sorry, auctioneers).

The cost of an entry-level Perth house has doubled in the past five years – that’s the latest finding from Domain’s First-Home Buyer Report 2026, released on Thursday.

“Australia remains one of the most challenging housing markets in the developed world for first-home buyers,” it states.

“While international comparisons consistently show home prices here have risen faster than incomes over the past decade, the experience of affordability within the country is becoming increasingly uneven.

“In 2026, first-home buyer affordability is being reshaped less by interest rates alone and more by the pace of growth in entry-level prices, which has accelerated sharply in several mid-priced capital cities.”

While Sydney remains the city with the longest time required to save for an entry-priced house deposit, Brisbane is in second place, followed by Adelaide and Perth.

Rapid entry-level price growth has significantly extended saving timelines in these markets – and units are also no longer providing relief.

Entry-level unit prices increased across all capital cities except Canberra. Price growth remained relatively modest in Melbourne, Sydney and Hobart, but accelerated sharply in Perth, Brisbane, Darwin and Adelaide.

Of course, as this report states, the 5% Deposit Scheme allows first-home buyers to enter the market sooner without paying lenders mortgage insurance.

It shaves off three years and nine months of saving for an entry-level house in Perth – now priced at $780,000, according to Domain – and two years and 10 months for a unit.

But with a cap of $850,000 (the median price in Perth when the scheme was introduced), and the city’s median price recently hitting $1 million, there is a shrinking pool of entry-level properties to pick from, and greater competition to secure them.

I’m still feeling optimistic – we’ve only been seriously looking into purchasing a home for a few months.

But for now, a free coffee might be all we walk away with.

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