THE latest snapshot of the WA property market shows housing affordability remains an east coast issue, according to the Real Estate Institute of WA.

Perth’s median house price fell 3.8 per cent to $505,000 in the three months to March, though REIWA president Hayden Groves said the drop was partly because the lower end of the market was thriving.

While the dream of home ownership was becoming increasingly difficult in other capitals, particularly Sydney and Melbourne, Mr Groves said first-homebuyers were the most active in the Perth market, with most sales in the quarter in the $400,000 to $450,000 price range.

“First-homebuyers remain active and continue to take advantage of improved affordability and choice in the market to secure a property that meets their needs,” he said.

Combined with record low interest rates, these factors made positive buying conditions for first-homebuyers, he said.

Mr Groves said the latest REIWA data showed though the median house price continued to fall, there was reason to be “less pessimistic” about the local property market.

“It was a little bit business as usual. We are not seeing significant falls in median house price or much of a change in transactional activity compared to the December quarter,” he said.

“There’s nothing wrong with having markets that are slow and steady.

“They’re probably more predictable than markets that are running either hot or very cold.

“The worst does seem to be behind us but it won’t be a spectacular recovery.”

Mr Groves said the rental market was showing positive signs.

Perth’s rental vacancy rate increased 0.1 per cent to 6.5 per cent. The median weekly rent fell 2 per cent to $360.

“I think there is a floor under rents now,” he said.