December 8, 2023

NAB Australian Housing Market Update: December 2023

Welcome to CoreLogic’s housing market update for December 2023.

2023 is ending with increasingly diverse housing conditions. While our national Home Value Index reached a nominal recovery in November, the market from city to city and region to region is moving at very different speeds.

The 0.6% rise in the national index in November was the smallest monthly gain since the growth cycle commenced in February, however it was enough to push the index to new record highs.  Following a 7.5% drop in values between the April 2022 peak and January 2023 trough, we’ve seen an 8.3% rise in values through to the end of November.  Overall, it took nine months for the market to find a floor through the downturn and ten months to recover the losses, providing a ‘V’ shaped recovery in national home values.

Multi-speed conditions have become increasingly evident across the capitals, with three cities recording a decline in values over the month.  These were Melbourne and Hobart, both down -0.1%, and Darwin, down -0.3%. Growth in Sydney home values also slowed sharply, reducing to just 0.3%, the smallest monthly gain through the recovery cycle to-date. Sydney home values slipped into negative growth over the last week of the month, hinting that we could see Sydney follow Melbourne’s lead, stabilising or moving into negative territory in December.

On the flip side, Perth housing values accelerated in November, posting the largest monthly gain since March 2021 at 1.9%. Brisbane values were 1.3% higher and Adelaide values rose by 1.2%. Housing values in these three cities are at record highs and continue to show remarkably low levels of advertised supply while purchasing activity is holding above average levels.

Read the full transcript here or watch the capital city video updates below for the latest news: