Australian housing market update [CoreLogic’s video] | February 2025

Key takeaways

Despite values being relatively steady in the month of January, downwardly revised performance through November and December
saw national home values down -0.3% over the rolling quarter.

Annual growth in home values has slowed consistently. The annual value change over the year to January 2025 is less than half the pace of growth seen over the year to January 2024 (9.3%)

The affordable end of the market dominated growth over the past year. Nationally, lower quartile values were up 9.4% over the year compared to a 1.5% rise seen in the more expensive upper quartile.

As we enter February 2025, dwelling values across Australia remain steady, with a softer trend of housing conditions persisting. National dwelling values saw a 0.2% fall in capital cities, while regional markets continued to thrive, with values rising 0.4% across the capitals.

Sydney's housing market has recorded a fourth straight month of declining values, with a 0.4% fall in January, bringing values 1.7% below their record high set in September last year. Melbourne's home values have declined for the 10th consecutive month, down 0.6% to be 3.3% lower over the past 12 months. Brisbane's values have continued to grow, but at a slower pace, with a 0.3% rise in January, while Perth's property boom has eased sharply, with a rise of just 0.4% in January.

Regional markets have seen significant growth, with Townsville up 26%, Central Queensland up 20%, and the Mackay region up around 20% leading the annual growth tables. Regional rental conditions have also been stronger, with the combined regionals rental index up 1.6% over the past three months.

Change in house prices, 12 months to January 2025:

Source: CoreLogic

Rolling quarterly change in values, dwellings (Sydney, Melbourne, Brisbane, Adelaide):

Source: CoreLogic

The housing outlook for 2025 is expected to be influenced by factors such as interest rate changes, population growth, and credit policies. While lower mortgage rates may act as a net positive for housing demand, easing credit policies could put a dampener on housing demand. Overall, the likelihood of a significant growth cycle over the coming year remains low, with affordability constraints, normalizing population growth, and soft economic conditions expected to persist.

Tips: As we move forward, these trends suggest a need for both buyers and sellers to remain vigilant and adaptable in response to an evolving housing landscape. Stay tuned for more detailed insights as we explore the dynamics of individual capital city markets in the coming weeks.

About Tim Lawless Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au