Domain has just released its latest house price report, revealing major shifts in the Australian housing market. Here’s a quick summary of what’s happening and what it means for buyers.
Market Overview: Slower Growth, New Opportunities
The latest data published in Domain’s December 2024 House Price Report, shows that house price growth has slowed to its lowest level since September 2023. While prices have continued to grow in many areas, the pace has eased, potentially setting the stage for a buyers’ market in 2025.
Despite the slowdown:
House prices have grown for eight consecutive quarters.
Unit prices have risen for seven consecutive quarters.
Key Highlights from the Domain Report
Here’s what’s happening across the capitals:
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Record-High Prices in Affordable Cities
Brisbane’s median house price hit $1 million for the first time.
Adelaide is expected to follow suit in early 2025.
Perth house prices surpassed $900,000 and could reach $1 million by late 2025. -
Sydney and Melbourne Diverge
Sydney house prices fell by $1,300 over the quarter – the only city to record a decline.
Melbourne saw its first house price rise in a year, marking its biggest jump in three years. -
Mixed Results for Units
Sydney, Brisbane, Adelaide, and Perth hit record-high unit prices.
Hobart’s unit prices dropped during the December quarter. -
Top Performers of 2024
Perth led house price gains with a 19.5% increase, followed by Adelaide (14.6%) and Brisbane (10.9%). -
Brisbane Slows Down
Brisbane’s house price growth halved compared to the previous year.
Expert Insights from Dr Nicola Powell
Dr Nicola Powell, Domain’s Chief of Research and Economics, explained the key trends:
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Affordability Challenges: Rising prices, cost-of-living pressures, and limited borrowing power are slowing demand.
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Wages vs. Prices: Wages haven’t kept up with home prices, making it harder for buyers to enter the market.
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Increased Supply: The number of homes for sale in December 2024 hit a three-year high across the combined capitals, and a six-year high in Sydney.
This shift is giving buyers more power:
- Softer clearance rates.
- Longer time on the market.
- Greater opportunities to negotiate on price.
What Does This Mean for Buyers in 2025?
The market is shifting, and opportunities are opening up for buyers. These include:
- More Choice: With more homes on the market, you have better options.
- Negotiation Power: Sellers are more open to price negotiations.
- Improved Conditions: The autumn selling season is expected to favour buyers.
Ready to Take the Next Step?
At Raiti Finance, we are here to help you find the right loan for your needs. Whether you’re buying your first home, upgrading, or looking to buy an investment property in 2025, we’ll guide you every step of the way.
Contact us today to discuss your options. Let’s turn your property dreams into reality!
