Housing market’s hit new record as prices slow

The typical home in Australia has hit a new high but property price growth has begun to moderate as buyers are spoiled for choice.

Researcher PropTrack’s latest Home Price Index recorded a softer 0.15 per cent increase in housing values after the spring selling season, encouraging more homeowners to list their homes on the market. Picture: Sam Ruttyn

The typical home in Australia has hit a high but property price growth has begun to moderate as buyers are spoiled for choice.

Researcher PropTrack’s latest Home Price Index recorded a softer 0.15 per cent increase in housing values after the spring selling season, encouraging more homeowners to list their homes on the market.

The increase nudged the ­median value of a home to eclipse $800,000 at a national level.

The larger capital cities under­performed, with Sydney gaining 0.08 per cent and Melbourne falling 0.07 per cent, marking the only major market to decline in November.

The strongest markets in Nov­ember were Hobart (up 0.43 per cent) and Adelaide (up 0.40 per cent), followed by Brisbane and Canberra, which both rose by 0.28 per cent.

Perth was up 0.23 per cent, while Darwin lifted 0.07 per cent.

PropTrack senior economist Eleanor Creagh said the pace of home price growth had slowed compared to earlier in the year.

“This softening in growth has occurred alongside a surge in stock for sale, giving buyers more choice and reducing the urgency to transact,” she said.

However, performance varied across markets with differing supply and demand conditions.

“The increase in properties hitting the market this year has been met with strong demand, but increased stock for sale has been a contributor to slowing price growth, along with affordability constraints and the sustained higher interest rate environment.”

The surge in the number of homes listed on the market through spring in the capital cities led to the regional areas rising by double last month, up 0.11 per cent compared to 0.26 per cent.

On an annualised basis, ­prices have risen 5.55 per cent across the combined capitals and 5.48 per cent in the regions.

Ray White Queensland chief auctioneer Gavin Croft said buyers saw the final weekend of the spring selling season as the final chance to secure a home before Christmas. “What stood out to me was the urgency from certain buyers who felt this was their last chance to secure property prior to Christmas,” he said.

“We saw a lot of contract variations for 21-day settlements, a clear strategy for buyers to be able to bid and buy before Christmas and enjoy Christmas in their new homes.”

Ms Creagh said prices were still expected to rise in the coming months, although at a slower pace than the strong growth experienced over recent years.