National home prices down in December as values fall for the first time in two years | Latest Proptrack Report

Key takeaways

National home prices fell by 0.17% over the month, though remain 4.73% higher compared to 12 months ago according to Proptrack.

Capital city areas led the decline, falling by 0.25% over December. Regional areas were more resilient, rising by 0.03%.

Canberra (-0.61%) and Melbourne (-0.53%) recorded the sharpest drops in prices, with prices also down in Sydney (-0.29%), Brisbane (-0.04%), Adelaide (-0.18%) and Darwin (-0.25%) in December.

Perth (+0.39%) has continued its run as the best performing capital city, while Hobart (+0.03%) held relatively steady.

Prices across most of Australia’s regions were mostly stable in December, with the exception of regional South Australia (+0.6%)

Despite the drop in December, national home prices remain well up from a year ago, with values sitting 4.73% higher year-on-year. Compared to March 2020, national home values are 45.1% higher.

Both houses and units saw their respective national medians fall by 0.17% in December, to reach $868,000 and $653,000, respectively.

Houses and units have moved at a similar speed over the past year, up 4.8% and 4.6%, respectively.

National home prices fell by 0.17% over the month, though they remain 4.73% higher compared to 12 months ago, according to the latest PropTrack Home Price Index.

Despite the drop in December, national home prices remain well up from a year ago, with values sitting 4.73% higher year-on-year. Compared to March 2020, national home values are 45.1% higher.

Ms Eleanor Creagh, Senior Economist at PropTrack explained:

“While December was the first month in which national home values declined in two years, price growth momentum had been slowing since March 2024.

This slowdown has been seen across both capital city and regional areas, with outperforming markets such as Greater Perth also experiencing this trend.

Source: PropTrack Home Price Index. January 2025

Ms Eleanor Creagh, further explained

Contributing to the slowdown – and reversal – of price growth, the number of properties for sale has been relatively high over the second half of 2024, particularly compared to the same period in 2023.

This has given buyers more choice and we’re seeing them take more time when purchasing.

While the impact of stage 3 tax cuts which took effect in July bolstered borrowing capacities for some buyers, this has been counteracted by softer economic conditions.

In particular, interest rate cuts that were originally anticipated prior to 2025 have now been pushed back.

The best performing regions for home price growth over the past 12 months can primarily be found in Queensland and Western Australia, which account for nine of the top 10 highest growth markets.”

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.