More Homes on the Market as Property Values Lose Steam

More Homes on the Market as Property Values Lose Steam

The property market is showing signs of slowing down, with home values increasing by just 0.4% in September, similar to the modest growth seen in July and August. Over the last three months, home values rose by 1.0%, the smallest quarterly rise since March 2023.

While some areas like Sydney, Brisbane, and Perth are still seeing growth, it's slower than before. For example, Perth home values went up by 4.7% this quarter (down from 6.2% in June), and Brisbane grew by 2.7% (its lowest rise since last April). Adelaide saw a 4.0% increase, but growth seems to be slowing down. On the other hand, Melbourne, Canberra, Hobart, and Darwin all experienced drops in home values this quarter, with Melbourne leading the decline at -1.1%.

More homeowners are choosing to sell, with new listings 3.2% higher than last year, making it easier for buyers to find options. However, homes are taking longer to sell, with the average home now on the market for 32 days, compared to 27 days a year ago.

Lower-priced properties are doing better than higher-priced ones, with affordable homes seeing a 12.4% increase in value over the past year, compared to just 3.8% for higher-end homes. Unit values are also outperforming house values in most capital cities.

In regional areas, growth has also slowed, with quarterly rises of 3.6% in regional Western Australia, 2.3% in regional South Australia, and 2.0% in regional Queensland leading the trend.

In short, while some areas are still growing, the property market is cooling down as more homes are listed for sale, and buyers are taking longer to make their purchases.