Over the past 12 months, national housing values have risen by 22%, representing an added $126,700 to the median value of an Australian home according to the latest release from CoreLogic.

While housing prices are continuing to steam ahead, this month is the slowest house price growth since January (0.9%).

Since its peak in March, when housing values rose by 2.8%, there has been a 'notable' trend towards milder price growth.

Tim Lawless, CoreLogic’s research director, said the slowdown is due to a number of reasons.

"Virtually every factor that has driven housing values higher has lost some potency over recent months," Mr Lawless said.

"Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available."

Brisbane and Perth prices grow at fastest pace in decades

Brisbane and Adelaide lead the home price growth in November, increasing by 2.9% and 2.5% consecutively, highlighting 'greater diversity' in capital city house price activity.

"Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from COVID lockdowns and a positive rate of interstate migration is fueling housing demand," Mr Lawless said.

"On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective."

Sydney and Melbourne recorded a flatter growth, up by 0.9% and 0.6% respectively.

Dwelling price growth in most other capital cities was slower and, in Darwin, house prices declined in November (-0.4%).

Perth recorded 0.2% growth, and Hobart and Canberra house prices were both up by 1.1%.

Overall, capital city house prices grew by 1.1% in November.

Regional dwelling price growth doubled the capital city growth this month, up by 2.2%.

The 'standouts' were regional Tasmania and regional NSW, where recorded growth was up by 2.5% and 2.4% respectively.

House and unit price gap widest on record

House prices outperformed units, up by 1.2% compared to 0.7%, but the gap is the 'narrowest' it's been since October 2020.

Based on median house prices across the capital cities, houses are 37.9% more expensive than units - this is the largest difference on record.

"With such a large value gap between the broad housing types, it’s no wonder we are seeing demand gradually transition towards higher density housing options simply because they are substantially more affordable than buying a house," Mr Lawless said.

More housing stock driving price growth slowdown

Nationally, the number of new houses available for sale is 15.7% above the five-year average.

With this rise, vendor metrics are 'softening', such as median number of days on the market and auction clearance rates.

"Fresh listings are being added to the market faster than they can be absorbed, pushing total active listings higher. More listings imply more choice and less urgency for buyers," Mr Lawless said.

"The rise in listings and softening of key vendor metrics implies the housing market may be moving through peak selling conditions, however it will be important to see if this trend towards higher listings continues after the festive season."

Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Brisbane Local Marketing on Unsplash



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy