Rising housing values driven by strong demand and tight supply levels have boosted the median dwelling value in Australia to $794,000, an increase of 8.0% or $59,000 across FY2023-24.
Despite the strong annual gain, the trend growth rate has eased since the highs of mid-2023 when the quarterly rate of change peaked at 3.3%. The most recent June quarter saw dwelling values rise by 1.8%, which is roughly in line with the March quarter (1.9%) and the preceding December quarter (1.8%).
“The persistent growth comes despite an array of downside risks including high rates, cost of living pressures, affordability challenges and tight credit policy. The housing market resilience comes back to tight supply levels, which are keeping upwards pressure on values,” CoreLogic’s research director Tim Lawless explained.
While most regions across Australia are trending higher in value, Melbourne and regional Victoria are the exceptions, with values down -0.2% and -0.3% respectively over the month. Hobart has also shown weaker conditions, although values were relatively flat in June (+0.1%). All three regions recorded a subtle decline in values over the June quarter (-0.3%).
Mid-sized capitals such as Perth saw values surge another 2.0% in June to be 23.6% higher over the year, while Adelaide values increased 1.7% in June to be 15.4% higher over the year and Brisbane values were 1.2% higher over the month and 15.8% higher over the year.
The strongest markets continued to show a severe shortage of homes available for sale. Over the four weeks ending June, the number of homes advertised for sale in Perth was 23% lower than in the same period last year and 47% lower than the previous five-year average. Similarly, Adelaide (-43%) and Brisbane (-34%) are also recording real estate listings that are significantly below average for this time of year.
On the other hand, Melbourne listings have risen to be 14% above the five-year average and Hobart listings have been elevated for several years, tracking 46% above average.
Strong housing demand is also evident in the estimated volume of home sales. Nationally, the annual number of homes sold was 8.6% higher than a year ago and 4.8% above the previous five-year average. The largest jump in annual sales relative to the historic five-year average has been in Perth, where the number of homes sold last year was 29% above average levels.
