Australian house prices have turned multispeed, with parts of Australia still booming and other parts entering a correction phase.
CoreLogic’s daily dwelling values index shows that prices at the 5-city aggregate level rose by 0.3% in October. However, there was wild variation across the major markets.
As shown above, values declined in Sydney (-0.1%) and Melbourne (-0.2%) in October. By contrast, Brisbane (+0.6%), Adelaide (+1.1%), and Perth (+1.4%) recorded solid or strong growth.
A similar picture emerged across the October quarter, with Sydney (+0.2%) and Melbourne (-0.7%) recording flat or negative growth, whereas Brisbane (+2.3%), Adelaide (+3.7%), and Perth (+4.5%) recorded solid or strong growth.
The following chart, plotting values on a rolling 28-day basis, shows the multi-speed nature of Australia’s major capital city housing markets:
Over the first 10 months of 2024, dwelling values increased by 5.4% at the 5-city aggregate level thanks to strong growth in Brisbane (+10.7%), Adelaide (+12.1%), and Perth (+19.2%).
By contrast, Sydney (+3.4%) and Melbourne (-1.7%) dragged the average down.
Finally, dwelling values at the 5-city aggregate level have risen by 16.5% from their January 2023 low. All markets other than Melbourne have recorded strong rebounds, although Sydney’s has obviously run its race.
October’s monthly value growth at the 5-city aggregate level was the lowest since the beginning of the rebound in February 2023.
Values will likely continue to slow until the Reserve Bank of Australia commences its monetary easing cycle next year.
