Experts are predicting that the weakness will continue until the Reserve Bank of Australia cuts interest rates.
Ray White Group Chief Economist Nerida Conisbee said the national housing market is showing clear signs of moderation as 2024 draws to a close.
“The national house price median has reached $898,745, representing a 7.7 per cent annual increase,” Ms Conisbee said.
“However, recent data indicates increasing market sensitivity to supply levels, with more properties coming to market tempering price growth in major capitals.”
Ms Conisbee said there’s a stark contrast between different markets across the country.
“Perth has emerged as the standout performer with 20.9 per cent annual growth, while Melbourne has experienced a significant slowdown to just 0.8 per cent annual growth,” she said.
The regional market narrative remains particularly strong, she said, with Western Australia leading the charge.
“Regional markets continue to demonstrate remarkable resilience, with Western Australia showing 16.1 per cent annual growth, followed by South Australia at 14.4 per cent and Queensland at 12.3 per cent,” Ms Conisbee said.
In the unit market, regional areas are also outperforming capital cities, with the national median reaching $669,271.
“Regional Western Australia and South Australia have recorded impressive growth of 16.5 per cent and 15.6 per cent respectively in the unit sector,” she said.
Ms Conisbee said the market outlook depends heavily on interest rate movements.
“Financial markets are pricing in two interest rate cuts for the second half of 2025, though timing remains uncertain,” she said.
“While population growth continues to support housing demand, the anticipated easing in monetary policy should improve borrowing capacity, though impacts may vary significantly across markets.”
