Perth’s median house price has had its lowest rate of annual decline in more than 18 months, according to the latest Domain State of the Market report.

While figures for the March quarter have revealed house prices fell 1.8 per cent to $561,165, there was a 3 per cent annual decrease in median price – the lowest rate of annual decline recorded since June 2015.

Domain Group chief economist Andrew Wilson said the weakening of Perth’s economy in recent years has continued to impact the housing market.

“The marginal falls this quarter suggest early signs of market stabilisation, but the journey back to sustained growth will be dependent on a recovery in the local economy to stimulate demand,” he said.

In December 2016, the Perth median house price was $571,303 and in March 2016, it was $578,426.

Peard Real Estate Hillarys licensee Byron Wallace said there was glimmers of hope of recovery, with some areas performing well in a “patchy” market.

“Examples are properties that are presented well and priced well can get multiple offers at the moment,” he said.

“And we are having at this time, (for the) first time in a long time, buyers asking us to find them properties rather than us trying to find buyers.

“So there are a few changes and I think with the New Year the inquiry rate has picked up as well.”

Acton chief executive Travis Coleman said overall sales volumes had recovered, with Acton currently selling about 20 per cent more properties compared to this time last year.

“In particular, we have noticed an upturn in the sales of properties priced above $1 million,” he said.

“Buyers recognise these properties represent excellent value for money due to a major correction in the top end of the Perth property market during the past two years.

“The upturn is property sales is being driven by renewed confidence in the WA economy and the fact that buyers believe that the market has bottomed and they risk paying more if they delay.”

Space Realty director Justin Davies said he believed Perth’s market had bottomed out and was moving upward.

“We as an agency in March, had one of our top three months for the last eight or nine years. We are selling more properties than we have in a long time,” he said.

Mr Davies said now was the time to buy.

“When I am selling properties for people that are talking about buying back into an area of the market – whether they are downsizing or getting something bigger – I am also telling them not to leave it too long,” he said.

A four-bedroom house in Edgewater, 25 kilometres from the Perth CBD, sold in April 2017 for $561,000 – just under the March quarter median. Closer to the city, a two-bedroom apartment in Claremont sold for $560,000 in March.

Sold in April 2017 for $561,000, 10 Ocean View Road, Edgewater, represents the typical Perth house. Photo: Supplied

Across the country, the State of the Market report revealed strong results for most housing markets for 2017.

The national median house price increased 2.2 per cent in the March quarter, reaching a record of $801,204 – a 10.2 per cent annual increase.

Most capital city housing markets kicked off the New Year with buoyant growth, driven by low interest rates and strong confidence levels.

“Growth levels in capital city housing markets have varied according to local supply and demand but, the Australian property market has largely gotten off to a strong start in 2017,” Dr Wilson said.

“Steadying interest rates could moderate house price growth over the coming year. Still, the market conditions remain an attractive proposition for investors.

“With healthy yields and low deposit rates, investor activity looks likely to continue throughout the year. Rents are on the rise in the majority of capital city markets and are unlikely to ease without increased supply.

“Regional markets are also seeing growth as more Australians across the board consider the affordability and lifestyle advantages of moving outside the capital centres.”

House prices increased in Melbourne, Sydney, Canberra, Hobart and Adelaide due to increased demand.

Darwin prices also rose, while oversupply in Brisbane, similar to Perth, saw prices drop.

Perth unit prices decreased during the quarter (3.5 per cent) and for the year (5.1 per cent), with a median of $368, 791.