Housing markets lost more steam in May as a combination of higher interest rates, rising inventory levels and lower sentiment dampened conditions. CoreLogic’s Home Value Index showed Sydney and Melbourne dwelling values continued to record the most significant month-on-month falls, while Canberra recorded its first monthly decline since July 2019.
Although housing values continued to rise across the remaining capitals, the growth was not enough to offset the depreciation in Sydney, Melbourne and Canberra, which pushed the combined capitals index -0.3% lower over the month.
Elsewhere growth trends remained positive in May, albeit with less momentum in most markets. Perth and Adelaide were the exceptions, where the quarterly growth trend lifted in May, although both regions remain below the peak quarterly rate of growth.
Welcome to CoreLogic’s housing market update for November 2024. Nationally, dwelling values rose a further 0.3% in October, the 21st month of growth since the cycle commenced in February last year however as we approach the end of the year, there are signs the housing market is losing momentum and conditions are becoming more diverse from region to region.
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Housing availability and affordability continue to be enormous societal and policy challenges. Scalability is crucial for success.
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