July saw a 0.5 per cent increase in average dwelling values, marking the 18th consecutive month of rising prices. This growth pushed the median house value to $798,207.
However, this overall positive trend masks a more complex landscape within individual cities. Melbourne, Hobart, and Darwin were notable exceptions, each experiencing a drop in house values. Melbourne led this decline with a 0.9 per cent decrease over the quarter ending in June, while Hobart and Darwin saw decreases of 0.8 per cent and 0.3 per cent, respectively.
Tim Lawless, CoreLogic’s research director, attributed these divergent trends to an imbalance between housing supply and demand. Despite rising national averages, supply shortages in some cities continue to drive up prices, while others are seeing stagnation or decline. For example, Sydney remains the most expensive city in Australia, with a median dwelling value of $1,174,867, up 0.3 per cent from June. Yet, Sydney’s growth rate has markedly slowed compared to last year, indicating a cooling market.
Brisbane follows as the second most expensive city, with median house prices reaching $873,987 after a 1.1 per cent increase last month. Canberra holds the third spot for highest house prices, with Melbourne, Adelaide, and Perth trailing behind. While Sydney’s growth has slowed, Perth’s market remains robust, benefiting from relatively affordable prices and low supply, which continues to drive solid growth.
CoreLogic data reveals a significant drop in the number of homes for sale in some cities. In Brisbane, Adelaide, and Perth, the available housing supply is more than 40 per cent below average levels for this time of year. Conversely, Melbourne and Hobart have seen their advertised supply exceed typical levels, contributing to the downward pressure on prices in these regions.
The overall outlook from economists suggests that another interest rate hike by the Reserve Bank is unlikely, with recent inflation figures aligning with expectations. This stability in monetary policy could potentially stimulate further activity in the housing market, especially if the cash rate, currently at 4.35 per cent, is reduced.
On the ground, real estate agents report a cooling of investor interest in Melbourne’s inner suburbs, with first home buyers becoming the predominant market segment. Despite this, apartments in these areas are still selling relatively quickly, averaging just 22 days on the market. While some agents are optimistic, others have been cautious, noting the increased effort required to secure sales in the current climate.
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