It’s a new year, and for aspiring homeowners, that means it’s time to focus on getting pre-approved and ready to purchase.
Property prices came down nationally for the first time in almost two years in December, yet there is a lot of price divergence among Australia’s capital cities.
The median property value in Sydney is currently sitting at $1,191,955, while in Darwin, it’s $496,871.
Property prices soared 19.1% in Perth in 2024, 13.1% in Adelaide and 11.2% in Brisbane. Meanwhile, Melbourne’s prices dropped -3.0%, Hobart saw prices fall -0.6% and prices dropped -0.4% in the ACT.
If your New Year’s resolution is to purchase a home or investment property in 2025, get in touch to run through your borrowing power and organise pre-approval on your finance.
Interest rate news
The latest inflation data showed the CPI indicator rose 2.3 per cent in the 12 months to November 2024, up from the 2.1% rise in the 12 months to October. However, underlying inflation, which is what the RBA focuses on for interest rates, fell from 3.5 per cent in October to 3.2 per cent in November.
All eyes will be on the latest inflation data, to be released on 29 January, as an indication as to when interest rates may drop.
For the time being, analysts expect property prices to continue to stabilise in early 2025. If the Reserve Bank of Australia (RBA) cuts the cash rate, prices could rise again.
While some economists still believe that a cash rate cut could come as early as February, others say Australia’s falling dollar may mean homeowners won’t see a cash rate cut until May.
The RBA will meet for the first time in 2025 on 17-18 February, so stay tuned.
To find out how your current home loan compares to others, get in touch today and we’ll compare the market for you.
Home value movements
Following 21 months of growth that pushed property values up 14.3%, Australia’s housing market entered a downturn in December.
National property prices dropped -0.1% – the first decline in almost two years.
Prices were down -0.7% in Melbourne, -0.6% in Sydney, and -0.5% in Hobart and Canberra.
On the other end of the spectrum, prices rose 0.7% in Perth, 0.6% in Adelaide, 0.5% in Brisbane and 0.4% in Darwin.
CoreLogic research director Tim Lawless said the decline in values was not surprising.
“This result represents the housing market catching up with the reality of market dynamics,” he said.
“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher.”
Meanwhile, regional property prices rose 0.2% across the country in December.
* Monthly Home Values figures as of 31 December 2024
* Australian auction results, clearance rates and recent sales for the week ending 12 January 2025
* The clearance rate is preliminary and current as of 11:30pm AEDT, 15 January 2025
With property prices falling in many markets and an interest rate cut expected in the near future, it may be time to consider a property purchase.
Whether you’re buying your first home, your next home, an investment property or looking to refinance, we can assist.
Please contact us for assistance and let’s run through your finance needs.
The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only. Although every effort has been made to verify the accuracy of the information contained on this website, Infocus, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.