2024 Housing Market Insights

-

The Australian housing market has proven remarkably resilient despite elevated interest rates and global uncertainty. Key trends that influenced the market this year are revealed in CoreLogic’s Best of the Best report, which provides insightful information for investors, buyers, and sellers.

 

Key Highlights from 2024

  • Strong Sales Volume: With 528,000 house sales nationally, up 8% from 2023 and 6% from the five-year average, home sales increased by a total of 6%.
  • Growing Home Values: The total worth of Australian homes surpassed $11 trillion as a result of a 5.5% increase in national home values.
  • Market Variability: There was considerable variation in the growth conditions. Melbourne saw a -2.3% fall in value, while Perth topped with a 21% yearly increase.

Affordability and Demand Trends

In 2024, high interest rates drove consumers to more reasonably priced market segments:

  • The national market values in the bottom quartile performed better, increasing 10.3% annually.
  • The top growing markets were Adelaide, Brisbane, and Perth, with median home values in high-performing suburbs falling below $661,000.
  • Darwin still had the majority of the most reasonably priced suburbs, with the median house value in Moulden being $392,008 and the typical unit value in Bakewell being $278,855.

Rental Market Performance

  • The annual growth rate for national rent values was 5.3%, down from 8.1% the year before.
  • Geraldton, Washington, had the most increase in unit rents at 21.5%, while Noosa Heads had the largest increase in house rents at 23.7%.
  • With Middle Swan home rentals increasing 17.0%, Perth topped the rental growth scoreboard.

Looking Ahead to 2025

In early 2025, CoreLogic predicts that buyer demand will continue to be hampered by potential drops in national property values. A possible cash rate cut in the second half of the year, nevertheless, would encourage fresh demand.

Important things to look out for in 2025:

  • Interest Rates: By the end of 2025, analysts estimate the cash rate may fall to 3.1% to 3.6%.
  • Affordability: For households with median incomes, lower mortgage rates may marginally raise the affordable buying price.
  • Diverse Market Performance: Melbourne and Hobart may experience a modest recovery, but Perth and Adelaide’s robust growth may slow.
  • Rental Trends: Given that demand may be impacted by high living expenses and possible job difficulties, slower rental growth is anticipated.

For a deeper dive into suburb-level performance and market trends, download the full Best of the Best report on CoreLogic’s website.