CoreLogic records first drop in home values in almost 2 years
- Written by: Liam Garman
- Yes
The decline was enough to see national quarterly home prices similarly recede 0.1 per cent, following a stagnant market in November.
CoreLogic data indicated that 2024 began with strong half yearly growth at 4.1 per cent, weakening to 0.7 per cent towards the end of the year. Five capitals recorded price drops between July and December.
CoreLogic research director Tim Lawless explained that the findings are not surprising, amid weakening demand and an increase in listings.
“This result represents the housing market catching up with the reality of market dynamics,” Lawless explained.
“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher.”
Despite the December results, home values across the country nevertheless increased 4.9 per cent over 2024, representing a $38,000 increase to the median value.
Over the year, mid-sized capitals dominated growth with Perth values increasing by 19.1 per cent, Adelaide growing 13.1 per cent, and Brisbane growing 11.2 per cent.
Three capitals saw an annual decrease in value, with Melbourne dropping by 3 per cent, Hobart at 0.6 per cent and the ACT at 0.4 per cent.
In December, Adelaide overtook Perth as Australia’s strongest market, surging 2.1 per cent relative to 1.9 per cent in Perth.
“Extremely low advertised stock levels have continued to support strong growth conditions across Adelaide, with stock levels tracking -34 per cent below the previous five-year average in mid-December.
“Perth, on the other hand, has seen a clear lift in advertised supply, which has provided buyers with more choice and less urgency, supporting a sharper slowdown in value growth relative to Adelaide,” Lawless added.
However, data indicated that growth was not spread evenly between affordable and expensive dwellings, with the most affordable quartile of houses recording the highest growth.
According to the data, the lower quartile of home values grew 9.8 per cent while the upper quartile grew 1.5 per cent.
“With worsening affordability constraints and reduced borrowing capacity, we have seen buyer demand pushed towards lower priced markets, which has, in turn, supported stronger growth conditions in these areas,” Lawless continued.
Growth in regional areas likewise recorded enviable growth, ending the year up 6 per cent versus 4.5 per cent across the combined capital cities. Like the cities, regional areas of Western Australia, South Australia and Queensland recorded the strongest growth with 16.1 per cent, 12.5 per cent and 10.5 per cent, respectively.