Perth home prices rose by 1.2 per cent over the month of June, reversing the slight dip experienced in May, according to market analysts RP Data.
RP Data and Rismark International’s monthly home value index put the median house price in Perth at the end of June at $515,200, after median values fell by 0.8 per cent in May.
Year on year, Perth median house prices have gained 5.2 per cent, RP Data said.
Across Australia, dwelling values rose by 1.4 per cent over the month of June, with Adelaide and Darwin the only capital cities recording decreases in value.
However for the three months to the end of June, capital city median dwelling values were down 0.2 per cent.
The best performing capital city in June was Melbourne, where median prices rose by 1.8 per cent, closely followed by Sydney, which exhibited a 1.7 per cent gain.
For the past 12 months, Sydney has been the strongest-performing city, notching a 15.4 per cent gain on the previous year.
“The last time we saw a negative quarterly movement in our combined capital city index was May last year,” Mr Lawless said.
“The recent reduction in capital gains is likely a correction from the strong market conditions reported over the first quarter of the year.”
Mr Lawless said the low interest rate environment would ensure housing values would hold steady for the foreseeable future.
“What is more likely is that natural affordability constraints will start to dent buyer demand, as will the low rental yield scenarios that are very much evident across the largest capital cities of Melbourne and Sydney,” he said.