Dwelling values increased a modest 0.4% in the first month of spring, broadly in line with the monthly change in July and August at 0.3% as momentum continues to leave the market.
Nationally, housing values rose 1.0% in the September quarter, the lowest rise in the national Home Value Index (HVI) over a rolling three-month period since March 2023 when the market was moving through the early phases of the current upswing.
Demonstrating the diversity of housing conditions, four capital cities recorded a fall in dwelling values through the September quarter, led by Melbourne where values were down -1.1%. Canberra, Hobart and Darwin also recorded declines over the quarter.
Sydney home values have continued to rise however the 0.5% increase through the September quarter was the lowest growth result since the three months ending February 2023 when values were down -0.3%.
The mid-sized capitals, which have led the pace of capital gains through most of the upswing, are also losing momentum, although growth continues to significantly outpace other capitals. Perth values were up 4.7% through Q3, easing from 6.2% in the June quarter. The quarterly gains in Adelaide look to be topping out with a 4.0% rise through the quarter and Brisbane’s quarterly growth has eased back to 2.7%, the lowest rise over a rolling three-month period since April last year.
The slowdown in the pace of growth comes as home owners increasingly look to sell. The flow of new listings coming onto the market was tracking 3.2% higher than a year ago nationally to be 8.8% higher than the previous five-year average for this time of the year.
“The rise in real estate inventory is a seasonal trend, with spring and early summer one of the busiest periods of the year for selling,” said Tim Lawless, CoreLogic’s research director. “However, the flow of freshly advertised housing stock hasn’t been this high at this time of the year since 2021.”
Alongside the rise in real estate listings, we have also seen vendor metrics soften, signalling weaker selling conditions. Auction clearance rates have wound back to the low 60% range across the combined capital cities, which is about 4 percentage points below the decade average. Similarly, homes sold by private treaty are staying on the market longer, with a median of 32 days to sell nationally through the September quarter, up from 29 days in the June quarter and 27 days a year ago.
Affordability constraints and reduced borrowing capacity continue to support stronger conditions across housing markets with lower price points. Across the combined capitals, lower quartile dwelling values have increased by 12.4% over the past twelve months compared with a 3.8% rise in values across the upper quartile. This trend is evident, to different extents, across every capital city except the ACT and Darwin, which are also the most affordable markets after adjusting for local household incomes.
Similarly, six of the eight capitals have seen unit values rise by more than house values, or in the case of Melbourne, record a smaller decline, over the September quarter.
Growth conditions across regional housing markets have also eased, with the quarterly trend in the combined regionals index reducing from 2.3% in three months ending April to 1.7% in the June quarter, and more recently to 1.0% over the September quarter. Similar to the capital city trends, growth across the regional parts of WA (+3.6% Sep quarter), SA (+2.3%) and Queensland (+2.0%) are leading the regional housing trends.
CoreLogic Australia