CoreLogic’s latest Home Value Index (HVI) revealed a slight decline in national home values by 0.1% for December, ending a lengthy phase of growth that lasted from February 2023 through October 2024.
This downturn in December also pushed the quarterly figures into negative territory, marking a significant shift in a market previously buoyed by strong growth despite economic pressures.
Tim Lawless (pictured above), CoreLogic’s research director, said that the downturn was anticipated.
“This result represents the housing market catching up with the reality of market dynamics,” Lawless said.
He further noted that the latter half of the year saw a weakening in growth due to increasing affordability issues and a rise in available properties, which dampened buyer demand.
Despite the monthly and quarterly declines, the annual overview showed a 4.9% increase in home values nationwide, adding roughly $38,000 to the median home value.
However, disparities exist among the capitals. Melbourne, Hobart, and the ACT experienced yearly declines, while Perth, Adelaide, and Brisbane saw notable increases.
Among them, Perth recorded a remarkable 19.1% rise over the year, though it, along with Adelaide and Brisbane, showed signs of slowing growth from previous peaks.
December also brought changes in the quarterly rankings of capital cities, with Adelaide surpassing Perth as the leading city in terms of growth, reporting a 2.1% increase in home values, CoreLogic data showed.
“Extremely low advertised stock levels have continued to support strong growth conditions across Adelaide,” contrasting with Perth’s increased property listings, which have cooled its market somewhat, Lawless said.
The lower quartile of the capital city markets witnessed the most significant growth, with a 9.8% increase in 2024, starkly outpacing the upper quartile’s growth of just 1.5%.
Lawless attributed this trend to worsening affordability and borrowing constraints, which have steered buyers towards more affordable options, thereby bolstering these segments.
Regional housing markets ended the year more robustly than their capital city counterparts, with a 6.0% increase in values compared to a 4.5% rise in the combined capital index.
Western Australia, South Australia, and Queensland led this growth in regional areas. However, regional Victoria and the Northern Territory bucked this trend, each recording declines in property values throughout the year, CoreLogic reported.
See the CoreLogic announcement here or download the full January HVI.
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