In what will be disappointing news for first home buyers, Australia’s housing market recorded its 19th-straight rise of .5% for the month of August, although there are signs the market is cooling.
According to the CoreLogic monthly Home Value Index (HVI), the median-valued home is now at $802,357, up from $798,207 in July. Nevertheless, gains were modest across August, with the biggest rise recorded in Perth at 2%, followed by Adelaide and Brisbane 1.4 and 1.1% respectively.
Sydney values grew by .3%, while four capital cities declined in August value with a -.4% dip in Canberra, a -.2% decline in Melbourne and Darwin, and a -.1% dip in Hobart.
As CoreLogic noted “the pace of growth is showing clear signs of slowing with the quarterly increase in national home values (1.3%) now less than half the rate of growth in the same three-month period of 2023 (2.7%)”.
“Looking forward, the national housing market should continue to see modest value increases to the end of 2024,” CoreLogic said in a statement.
“While there is a clear slowdown in growth, housing values are underpinned by a longer-term lack of new supply, which has been exacerbated recently by ongoing constraints in the residential construction sector.”
CoreLogic’s head of research, Eliza Owen, added that the growth in Perth, Brisbane and Adelaide was running out of steam.
“Housing values cannot keep rising at the same pace in the mid-sized capitals of Perth, Adelaide and Brisbane when affordability is becoming increasingly stretched, particularly in the context of elevated interest rates, loosening labour market conditions and cost of living pressures,” she said.
