Home values in Australia saw a modest increase of 0.4% in September, maintaining the steady pace of growth seen in July and August, CoreLogic reported.
Over the third quarter, dwelling values rose 1.0%, marking the lowest increase in the national home value index (HVI) since March.
This period reflects a cooling in market momentum as homeowners increasingly look to sell.
Four capital cities experienced declines in dwelling values during the September quarter.
Melbourne led the way with a 1.1% drop, while Canberra, Hobart, and Darwin also saw slight decreases.
Sydney, however, posted a 0.5% gain, its smallest increase since early 2023.
Meanwhile, mid-sized capitals like Perth (+4.7%) and Adelaide (+4.0%) outpaced the others, though their growth is also slowing.
The number of new listings across Australia has risen by 3.2% compared to last year, with inventory levels now 8.8% above the five-year average, CoreLogic data showed.
“The rise in real estate inventory is a seasonal trend,” said Tim Lawless (pictured above), CoreLogic’s research director.
However, vendor metrics are softening, with auction clearance rates dropping to the low 60% range and homes staying on the market longer, averaging 32 days to sell, up from 29 days in June.
Affordability challenges and limited borrowing capacity have kept demand strong in the lower-priced housing markets.
Across the capitals, lower quartile dwelling values increased by 12.4% over the past year, compared to just a 3.8% rise in the upper quartile.
This trend is seen across most capitals, with unit values rising faster than house values in six of the eight cities.
Growth in regional housing markets has also decelerated, with quarterly increases slowing from 2.3% in April to 1% in September.
Still, regional areas of Western Australia (+3.6%), South Australia (+2.3%), and Queensland (+2.0%) continue to lead the trend in growth for regional housing markets, closely following capital city patterns, CoreLogic reported.
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