Perth remained on a roll in January, extending its gains in home values and rising as the fastest-growing market in Australia, according to the Real Estate Institute of Western Australia (REIWA).

Home values in Perth increased by 1.6% monthly and 3.8% quarterly to $490,000 in January, according to data from CoreLogic. This was off the back of a strong year-end for prices in Perth in December.

"With the pandemic continuing to impact travel and our local economy bouncing back after a challenging year, more and more West Australians are recognising that now is the time to buy," said Damian Collins, president of REIWA.

Sales listings in Perth grew in January, up by 1.2% from December to 8,287. However, this level is still 33.3% lower on an annual basis.

"However, we expect more sellers will see the benefits of listing their properties now rather than late," Collins said.

Sellers are missing out on the faster selling rate of homes. During the month, it only took 21 days for properties to get sold, down from 43 days last year.

"There is little doubt now that the Perth market has swung into the seller’s favour and buyers are needing to act a lot faster to secure a property," Collins said.

In terms of sales activity, the volume was slightly down from the unprecedented spike in December.

"The spike in sales Perth experienced during December was quite unusual, typically we see activity drop off in December and January, before lifting again as we get further into the new year," Collins said.

Despite the relative slowdown in sales, some suburbs still reported robust gains in activity, with Meadow Springs hitting the biggest sales gain at 75%. Yangebup, Mandurah, Alkimos, and Heathridge followed, recording sales growth of up to 67%.