CoreLogic’s latest data showed that 2021 was the most popular year for Australian home purchases, with around 549,000 homes sold.
Factors like record-low mortgage rates and the HomeBuilder incentive helped drive high buyer activity.
“2021 had one of the highest annual growth rates in home values on record,” said Eliza Owen (pictured above), head of research at CoreLogic.
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City home sale vary, Perth leads 2024 turnover
The time at which homes were last sold varies by city.
Perth leads with 3.2% of homes sold in 2024, while Brisbane has the highest stock turnover in the last five years at 24.6%.
In contrast, Hobart's most common last sale date was 2017, when home values surged 45.7%.
“Risk of some value loss” remains for Hobart’s 11.5% of homes bought after 2021, according to Owen.
Those who purchased homes in 2021 face higher mortgage payments, with rates increasing by 335 basis points since then.
CoreLogic noted that many of these buyers were “incentivised into the market at a higher-risk time.”
Average monthly mortgage payments have increased by almost 50% since 2021, raising concerns about returns.
Despite rising mortgage costs, most homeowners appear to be managing.
RBA’s March Financial Stability Review reported that only 1% of home loans were in negative equity.
Additionally, over 90% of 2021 buyers had a 10% deposit or higher, providing a buffer against falling home values.
While 4.9% of housing stock could be sold in 2024, buyers may not see immediate capital growth. However, mortgage serviceability is expected to improve as the cash rate declines through 2025.
Owen highlighted that, while monetary policy changes could boost confidence, “affordability constraints are likely to remain” due to high living costs.
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