The good news for renters and the bad news for mortgagees
Australia’s property values slumped across the finish line into the new year, with Sydney and Melbourne leading the first monthly fall in national values in two years in December.
CoreLogic data shows about $38,000 was added to the median value of a home over the past year, as a 3 per cent fall in Melbourne values was offset by 2.3 per cent growth in Sydney and double-digit gains in Brisbane, Adelaide and Perth.
Home value growth has probably passed its peak, according to CoreLogic research director Tim Lawless.Credit: Bloomberg
But for the month of December, CoreLogic’s Home Value Index ended in negative territory, with national values down 0.1 per cent after peaking in October and holding flat in November.
It was the first national monthly decline in nearly two years, weighed down by falls in Melbourne (down 0.7 per cent), Sydney (down 0.6 per cent), Hobart and Canberra (both down 0.5 per cent).
CoreLogic research director Tim Lawless said even in Brisbane, Perth and Adelaide, values rose at a slower pace in the final months of 2024.
Although these cities recorded double-digit annual growth, he said it was “clear these markets have passed their peak rate of growth”.
Lawless said the decline in home value growth was no surprise as advertised supply levels picked up and buyer demand weakened in the second half of 2024.
However, affordability constraints and reduced borrowing capacity pushed buyer demand towards lower-priced homes. This pushed up home values in the lowest quartile of the market by 9.8 per cent compared to just 1.5 per cent in the highest quartile.
