Housing Prices Are Increasing at a Slower Rate: September Quarter Analysis

In the September quarter, national home values rose by just 1%, marking the slowest quarterly increase since March 2023, according to a recent report from CoreLogic. This deceleration in price growth can be attributed to a rise in property listings and more cautious buyer behavior. As a result, the annual growth rate slowed to 6.7%, down from 9.7% at the beginning of the year.

Rental prices also showed minimal movement, with a slight increase of just 0.1% over the three months. This is the slowest rental growth rate observed since the pandemic lockdowns of 2020.

Despite the overall slowdown, home values in cities like Perth, Sydney, Brisbane, and Adelaide are at record highs. Perth leads the way with an impressive annual growth rate of 24.1%, followed by Brisbane at 14.5%, Adelaide at 14.8%, and Sydney at 4.5%.

Meanwhile, Melbourne and Hobart experienced declines in both quarterly and annual housing values. Melbourne saw a decrease of 5.1%, while Hobart faced a significant drop of 12.5%, a stark contrast to the record levels of March 2022.