National home prices in Australia have taken a downward turn as of December 2024, marking the first monthly decline in two years. The median price of an Australian home fell by 0.17% during the month, resulting in a new national median of $795,000, down from its record high in November. This decline is notable as it follows 23 consecutive months of price increases that had buoyed the market.
The downturn in home prices is largely attributed to the performance of capital cities, where prices dropped in all cities except for Perth and Hobart. Regional areas, in contrast, exhibited resilience, maintaining stable prices with a slight overall increase of 0.03%. The differences in performance between capital and regional markets highlight the evolving dynamics of Australia’s real estate landscape.
Among the capital cities, Canberra and Melbourne experienced the sharpest declines, with prices falling by 0.61% and 0.53%, respectively. Other cities that recorded decreases included Sydney (-0.29%), Brisbane (-0.04%), Adelaide (-0.18%), and Darwin (-0.25%). This trend is indicative of shifting buyer sentiment and changing market conditions, as potential homebuyers face a larger inventory of homes available for sale, which has contributed to a more measured approach to purchasing.
Interestingly, while most capital cities witnessed price decreases, Perth has continued to shine as the best-performing state, showing a 0.39% increase in home values. This rise can be attributed to a combination of factors, including strong demand, economic stability in Western Australia, and an ongoing influx of buyers attracted to the region’s lifestyle and job opportunities. Hobart also maintained a relatively stable position with a slight price increase of 0.03%.
The report highlights that, despite the recent monthly decline, home prices are still significantly higher than they were a year ago, with an increase of 4.73% compared to December 2023. This growth reflects the broader trends in the housing market since the onset of the pandemic, which saw many buyers seeking larger homes and more space outside urban centers.
In regional areas, the performance has been remarkable, with regions such as South Australia witnessing the most significant growth, rising by 0.60% in December and 13.03% over the past year. Despite the ongoing competition for housing in regional markets, the supply of new homes has not kept pace with demand, further driving up prices.
The continued migration from capital cities to regional areas has been fueled by changing lifestyles, with many Australians seeking a better quality of life, affordability
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