How much Geelong homeowners lost in 2023: PropTrack Home Price Index

Geelong house values lost tens of thousands of dollars in 2023. But there are signs it could be poised for a recovery in the new year.

Geelong’s housing market is poised for a recovery year in 2024 after a tough 2023.

Geelong’s housing market ended 2023 about $23,000 worse off than it started.

But with the city’s $750,000 median home price nominally flat over the final few months of the year, PropTrack’s latest House Price Index has hinted the worst may be behind it.

In addition to a 3.01 per cent decline in the city’s typical dwelling price, homeowners have also been hit by rising loan costs after a further five interest rate hikes across the past 12 months.

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Nationwide, house prices rose about $58,883 (6.83 per cent) across the state capitals.

PropTrack economist Anne Flaherty said despite rising interest rates, most homeowners appeared to have been able to hold on in 2024, whether home values had risen or fallen in their area.

“While there’s no question many mortgage holders have been doing it tough, to date, there has only been evidence of a modest increase in distressed listings,” Ms Flaherty said.

Geelong’s housing market didn’t have its best run in 2023, but there could be brighter times ahead in 2024.

Paying the mortgage became increasingly challenging in 2023, with online comparison site Finder figures showing that as cash rate hikes hit last year, the average variable home loan’s interest went from 4.29 per cent in January to 5.74 per cent by December.

Contrasted against an 80 per cent loan for a house bought on a 25-year term at the start of the year, the figures show Geelong owners handed $3366 over to the banks more than they would have if rates hadn’t changed.

And the hip pocket pain will continue into the new year, with the monthly mortgage payment for the city’s typical home ending the year at $3722, far above the $3223 a month where they started.

Ms Flaherty added that while there was a slight chance of a rate hike this year, home prices were very likely to grow, with an up to 5 per cent increase forecast by the PropTrack economics team nationwide.

PropTrack economist Anne Flaherty.

“The factors that drove price growth in 2023 are likely to support a further expansion in prices over 2024,” she said.

“These include strong buyer demand, population growth, relatively limited stock for sale, and a more stable interest rate environment.”

Perth and Adelaide are tipped for the best of the growth, followed by Brisbane, with Sydney and Melbourne to maintain a slower rate of growth.

With Geelong on the cusp of a recovery, it could follow a similar trajectory to Melbourne.

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Originally published as How much Geelong homeowners lost in 2023: PropTrack Home Price Index