
The pace of growth in Australia’s housing market has eased in recent weeks, according to the latest data from CoreLogic.
CoreLogic economist Kaytlin Ezzy reported that national home values rose by 0.5% over the four weeks to July 18, down from 0.7% growth in the previous month.
“While sales and listing activity typically show a seasonal easing through winter, the trend in housing values hasn’t historically displayed seasonal behaviour,” Ezzy said.
“Instead the recent easing in growth has likely been linked to persistently low consumer sentiment amid stubbornly high inflation and a rise in advertised stock levels in some markets.”
The slowdown was most pronounced in more expensive markets, with house values and Sydney property showing the sharpest deceleration.
Melbourne and Hobart were the only capital cities to record falling values, with high stock levels putting downward pressure on prices.
Ezzy noted that affordability concerns were impacting buyer demand, especially in pricier markets.
“Since the first rate hike in May 2022, the average new mortgage repayment for Sydneysiders has increased by approximately $2,200 per month, adding significant pressure to household budgets already stressed by high cost of living pressures,” she said.
Mid-sized capitals like Perth, Adelaide and Brisbane continued to lead growth, but showed early signs of slowing as their affordability advantage eroded.
Despite the easing pace, most markets were still recording positive price growth. Ezzy said the fundamental supply-demand imbalance continued to support rising values overall.
However, she warned that persistently high inflation and interest rates could further dampen housing demand in coming months.
“Although rates remaining higher for longer could erode housing demand, its likely values will broadly continue to rise, albeit at a slower pace and with significant diversity from city to city and region to region,” Ezzy said.
CoreLogic will release its full set of monthly indices, including rental market performance for July, on August 1.