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The median property value in Australia is now at a record high of $753,654.
But experts expect prices to stabilize next year.
Property analytics company CoreLogic’s research director Tim Lawless said 2024 was shaping up to be a very different property market.
“(There are) expectations that value growth will be lower and more diverse from region to region and across housing types,” he said.
“We don’t expect to see a material increase in real estate activity until interest rates are lowered, and that’s not likely until the second half of next year.”
But before we move on to next year, let’s look at Core Logic’s real estate numbers for November.
What is the most expensive city to buy?
CoreLogic data says Sydney remains the most expensive place to buy a property, with a median value of almost $1.4 million.
But in terms of how property prices changed in the capital in November, Perth topped the list.
Meanwhile, prices fell a fraction in Melbourne, Hobart and Darwin.
Here’s a quick summary of how prices changed in November:
Perth: Up to 1.9 percent
Brisbane: Up to 1.3 percent
Adelaide: Up to 1.2 percent
Canberra: Up to 0.5 percent
Sydney: Up to 0.3 percent
Melbourne: Down 0.1 percent
Hobart: Down 0.1 percent
Darwin: Down 0.3 percent
Now let’s take a more detailed look at the capital cities:
Adelaide
Monthly change: 1.2 percent increase
Average home value in Adelaide: $756,989
Average unit value: $479,428
Since Adelaide property prices bottomed in March 2023, they have risen 8.7 per cent.
Meanwhile, rental vacancy rates remained extremely tight in November, at 0.3 per cent, the lowest of all capital cities.
brisbane
Monthly change: 1.3 percent increase
Median home value in Brisbane: $870,526
Average unit value: $552,332
In addition to Adelaide and Perth, Lawless said property values in Brisbane continued to show notably low levels of advertised supply, while purchasing activity was above average levels.
“This imbalance between available supply and demonstrated demand maintains strong upward pressure on home values in these markets, despite headwinds leading to weaker housing market conditions on the Lower East Coast,” he said. .
Canberra
Monthly change: 0.5 percent increase
Median home value in Canberra: $965,378
Average unit value: $590,425
Darwin
Monthly change: 0.3 percent decrease
Average house value in Darwin: $572,504
Average unit value: $380,761
Lawless believes we won’t see the same value growth rates in 2024.(ABC News: Liz Pickering)
hobart
Monthly change: 0.1 percent decrease
Median home value in Hobart: $702,722
Average unit value: $526,961
Hobart was one of three capital cities to record a drop in values during November, albeit a small one.
Looking at annual figures, housing in Hobart has seen a 3 per cent decline.
Meanwhile, rental conditions have improved in Hobart, with vacancy rates of 1.9 per cent, the highest of any capital city.
Melbourne
Monthly change: 0.1 percent decrease
Median home value in Melbourne: $943,725
Average unit value: $610,490
Melbourne home values fell 0.1 per cent in November, their first monthly drop since bottoming out in January this year.
Lawless said while the Melbourne Cup Day fee increase took some pressure off the market, there were other factors at play.
“Rising announced stock levels, worsening affordability and persistent low consumer confidence are also acting as a drag on value growth in some markets, such as Melbourne.”
Perth
Monthly change: 1.9 percent increase
Median house value in Perth: $676,910
Average unit value: $457,296
Property values in Perth are going full steam ahead, rising 1.9 per cent in November, the biggest monthly gain since March 2021.
The annual growth rate of house prices has now increased by 13.5 per cent, eclipsing that of Brisbane (10.7 per cent) and Sydney (10.2 per cent).
Quotes are almost 40 percent below their five-year average for this time of year.
Sydney
Monthly change: 0.3 percent increase
Median home value in Sydney: $1,397,366
Average unit value: $836,220
Sydney home value growth slowed sharply in November, rising 0.3 per cent, less than half the 0.7 per cent rise recorded in October.
November’s modest increase was also the smallest monthly increase since February of this year.
Mr Lawless said he believed Sydney’s property market could be on track to fall next month.
What is the real estate market forecast for 2024?
PRD chief economist Diaswati Mardiasmo says things will become “more unaffordable” in the new year, but that we could see “progress” towards the end of the year.
She says the outlook will be driven by a number of trends.
“We enter the new year with Low supply and increasing demand.a higher cash rate, lower savings, and people prioritizing primary needs over secondary needs.
“At the same time, governments are trying to stimulate supply and people are also getting ‘used’ to higher cash rates and the changing economic landscape.
“Therefore, The first trimester may not feel any different.except perhaps in some areas starting to see a recovery in house prices.
“It will feel like there is no hope.” everything becomes more unaffordable.
“However, as we innovate through this resilience We will start to see some progress.all of which we will feel more towards the latter part of 2024 as inflation and the cash rate decline.”