Regional WA property values still rising but starting to slow as boom runs out of steam

Regional property values continue to surge but there are signs the market is cooling off after sharp price rises earlier in the year.

Latest figures from property analysts CoreLogic revealed property prices in regional WA have shot up 19.9 per cent in the past 12 months, although values increased by only 0.2 per cent across September.

Perth values went up 0.3 per cent in the past month, with the average home setting buyers back just under $525,000.

Dwelling prices across Australia are up a combined 17.6 per cent over the first nine months of the year — tracking at the fastest rate since 1989.

However, CoreLogic research director Tim Lawless said the steep growth was starting to run out of steam because of fewer government incentives and harsher buying conditions.

“With housing values rising substantially faster than household incomes, raising a deposit has become more challenging for most cohorts of the market, especially first-homebuyers,” he said.

Up-to-date property stats on the Geraldton market will not be available from REIWA until later this month, but data from the June quarter showed values were up 3.9 per cent.

Geraldton Property Team sales executive David Potiuch said he had seen signs of the local market starting to cool off.

“Prices were on the rise, but things have slowed down a little bit now,” he said.

“There are still large volumes of sales happening. There are a lot of buyers and sellers coming to the market.”

Mr Potiuch said Geraldton houses were still selling quickly if they were correctly priced.