Key takeaways
The national capital city median house price increased again by 0.3% to $1,154,359 over October, according to the latest data from My Housing Market.
The national quarterly house price has now increased over 20 of the past 21 months, has risen by 7.1% over the year ending October 2024 and is higher by 13.9% over the past two years.
National unit prices bounced back over October following the fall of September, rising by 0.6% to $661,651.
The national unit price is now 5.8% higher than the October quarter 2023 result.
Value buying opportunities exist in Sydney and Melbourne, where prices are still below early 2022 peaks.
Factors like easing interest rate hikes, strong jobs growth, high migration, and wage increases will continue supporting housing demand, though the growth may moderate moving forward.
Chronic housing undersupply, high rents, and low vacancy rates persist, although early signs of increasing rental supply and easing tenant demand are emerging.
National home prices were higher over October with unit price growth resuming after the fall reported over the previous month.
The national capital city median house price increased again by 0.3% to $1,154,359 over the October quarter compared to the September quarter results, according to the latest data from My Housing Market.
The national quarterly house price has now increased over 20 of the past 21 months, has risen by 7.1% over the year ending October 2024 and is higher by 13.9% over the past two years.
A reviving Hobart and volatile Darwin were the top capital city performers over the quarter, with prices higher by 1.6% and 1.2%, respectively, followed by Brisbane up 0.9%, Perth increased by 0.5%, Sydney higher by 0.4%, Canberra up by 0.2% and Adelaide increased 0.1%.
Quarterly house prices, however, fell by 0.3% in Melbourne over the month.
House prices have increased significantly in several capitals over the year ending the October quarter of 2024, with Perth still clearly the top performer, up by 24.8%, followed by Brisbane, up 16.1%, Adelaide higher by 14.8%, and Sydney up 5.2%.
Hobart annual house prices increased by 0.9%, with Melbourne, however, falling by 1.2%, Canberra down 2.6%, and Darwin lower by 2.8%.
National unit prices
National unit prices bounced back over October following the fall of September, rising by 0.6% to $661,651.
The national unit price is now 5.8% higher than the October quarter 2023 result.
Perth was again the top performer over October, with unit prices rising by 1.1%, followed by Brisbane, Melbourne, Adelaide and Canberra, each higher by 0.8%, with Sydney up 0.4% over the quarter compared to the September quarter results.
Darwin unit prices, however, fell by 1.6%.
Brisbane, Perth and Adelaide continue to record clearly the highest annual unit price growth to October 2024, up by 26.1%, 25.4% and 20.2% respectively.
Sydney annual unit prices are now higher by 3.8% with Melbourne steady. Darwin, Canberra and Hobart however have recorded annual unit price decreases over the year - down 1.0%, 2.0% and 3.0% respectively.
Comment
Capital city housing markets produced generally positive results over the October quarter although the rate of growth eased for the recent top performers of Perth, Brisbane and Adelaide.
Melbourne maintained recent flat house price outcomes, with Sydney prices continuing to rise steadily following solid growth over the past year.
Unit prices were higher in both Sydney and Melbourne with the Hobart housing market showing signs of revival following price falls over the past year.
The recently subdued Canberra market also reported positive results for both houses and units over October.
The mid-spring housing market continues to attract buyers and sellers in significant numbers with high seasonal auction sales reported in most capitals through October.
National home prices are likely to continue to increase over coming months although the recent boom-time drive from Perth, Brisbane and Adelaide is likely to ease marginally despite robust buyer and seller activity continuing and reflecting affordability positives remaining in those capitals.
Value opportunities remain for buyers in Sydney and Melbourne where prices are currently below or similar to the previous peaks recorded in early 2022.
Growth rates over the remainder of 2024, although set to remain generally positive, are however unlikely to match the strong results recorded over the winter and spring period last year that reflected a robust, reviving market environment driven by a surge in buyer activity.
Underlying drivers will continue to support housing market activity with the spectre of higher interest rates easing with recent monthly inflation data falling sharply and approaching the RBA target range - at least for now.
The national economy however remains strong with still relatively low jobless rates and surging jobs growth driving record-level wage increases.
Continuing high migration over the shorter-term will exacerbate current chronic housing undersupply supporting high rents and low vacancy rates in capital city rental markets - although early signs of rising rental supply and reduced tenant demand are now emerging.
High rents and higher prices generally however are providing clear incentives for first home buyers and particularly investors chasing solid investment returns.
Capital city housing markets have recorded generally positive price results over the October quarter compared to the September quarter data although the recent monthly dominance of Perth, Brisbane and Adelaide is waning but remain clear leaders in annual price growth.
Melbourne and Sydney by comparison remain the underperformers of the major capitals with home price growth remaining subdued and waning – and awaiting an expected revival over the rest of the spring selling season.
The increased likelihood of an interest cut perhaps early in 2025 will however act to refuel housing markets.
- Also read:Adelaide housing market update [video] | November 2024
- Also read:Sydney’s Rental Market Trends and Forecasts
- Also read:Melbourne housing market update [video] | November 2024
- Also read:How much of your income should you spend on a mortgage?
- Also read:Sydney housing market update [video] | November 2024
