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Australian dwelling prices have hit a new record in November across the country, reaching a median home price of $800,000 for the first time.
A new Home Price Index report by PropTrack has revealed that home prices hit a new record high in November 2024 after rising by 0.15 per cent in November 2024.
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Report author and REA Group senior economist, Eleanor Creagh, said that home prices have risen by 5.53 per cent over the year and marked the 23rd consecutive month of growth.
“While housing demand has remained resilient to persistent affordability constraints, we have seen the pace of home price growth slow since earlier in the year,” Creagh said.
“This softening in growth has occurred alongside a surge in stock for sale, giving buyers more choice and reducing the urgency to transact. However, performance has varied across markets with differing supply and demand conditions.”
Price growth varies across the country
According to the report, the annual price growth in the combined capital cities reached 5.55 per cent, while regional areas were up 5.48 per cent over the year.
Creagh said that despite showing growth nationwide, price performance varied in different capital cities.
After over two years of decline, prices in Hobart continued to recover over the month, recording the most substantial growth in November, with a 0.43 per cent increase – representing a 1.33 per cent yearly increase.
Currently, the median home price in Hobart is $682,000.
“It is the first time Hobart has recorded positive annual growth since October 2022,” Creagh said.
“Even so, Hobart remains the weakest capital city market when comparing change from peak, with prices down 7.22 per cent, despite having recovered a fifth of their decline in the past seven months.”
Following Hobart, Adelaide markets outperformed the rest of the nation in November, with home prices rising 0.40 per cent to a new peak.
Creagh said that although the number of properties on the market increased in spring, new listings were quickly absorbed amid solid buyer demand. Yet, Creagh forecast the market to slow down due to higher interest rates and less affordable housing.
Brisbane and Canberra tied for third place in best property market growth in November, both recording a 0.28 per cent increase.
Recent data showed that Brisbane has become a hub for investors, giving buyers a greater choice of property.
Creagh said Brisbane remains one of the strongest-performing capital city markets nationwide, with a 12.56 per cent year-to-year increase.
“This prolongs a run of strong growth in Brisbane that has seen Brisbane become the second-most expensive capital, ahead of Melbourne and Canberra, with prices up 80 per cent over the past five years,” she said.
The median price of a dwelling in Brisbane is now $868,000.
Nationwide, Perth, Adelaide, and Brisbane remained the strongest capital city markets for growth, with respective annual prices of 18.74 per cent, 14.64 per cent, and 12.56 per cent.
“Despite remaining the top performing market for annual home price growth, Perth growth has slowed over the past quarter in line with the slowing momentum seen in other markets,” Creagh said.
In comparison, Sydney’s prices showed the least growth, increasing by 0.08 per cent, while Melbourne’s home prices fell by 0.07 per cent, now at $792,000.
Creagh said that, despite the slight increase, Sydney prices remained strong with a 4.28 per cent growth year to date, representing a 4.55 per cent increase compared to November 2023.
“While the increase in properties hitting the market in Sydney this year has been met with strong demand, greater stock for sale has been a contributor to the sharp slowing of price growth, along with affordability constraints and the sustained higher interest rate environment,” she said.
Although prices dropped in Melbourne, the report ranked the city as the fourth-most expensive capital in November, down from second place.
“Price momentum has been weaker in Melbourne over the past four years in part due to greater buyer choice and higher property taxes,” Creagh said.
Comparing regional areas and capital cities, the November Home Price Index report showed that the listing surge in capital cities had levelled the field between regional and metro areas.
In November, prices rose by 0.26 per cent in regional areas compared to 0.11 per cent in the capitals.
Regional South Australia and Tasmania led growth in November, with a 1.06 and 0.65 per cent increase, respectively, while regional Victoria and the Northern Territory saw prices down by 0.05 and 0.10 per cent over the same period.
“The increase in properties hitting the market this year has been met with strong demand, but increased stock for sale has been a contributor to slowing price growth, along with affordability constraints and the sustained higher interest rate environment,” Creagh said.
“In the period ahead, home prices are expected to lift, though the pace is expected to remain softer trailing the strong growth in prices over recent years.”
[Related: Housing is a major election issue for almost 9 in 10 Australians]
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