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As price growth slows and sales listings increase, an industry report has expressed that property markets across the nation have remained “robust” in 2024.
A recent report by valuation firm Herron Todd White (HTW) has relayed that national home prices (houses and units combined) increased by 0.30 per cent over May 2024, and 6.68 per cent annually since May 2023, with the median price now registering as $784,000.
It’s the 17th consecutive month that house prices have lifted.
Commenting on the firm’s findings, HTW director Rachel Anderson stated the recent decision of the RBA to hold the cash rate steady indicated “property markets appear to have moved on from the hyperfocus on rate cuts in 2024”.
“The rate of price growth has slowed and sales listings have increased,” said Anderson.
“The national consensus appears to be prepared for continued population growth, tight rental markets with rental growth offsetting higher mortgage payments for investors, and demand for entry level or lower percentile property prices remaining strong.”
HTW further detailed that home prices across the combined capital cities increased by 0.41 per cent, and by 7.22 per cent annually, resulting in a median price of $851,000.
Notably, no additional growth was recorded in the combined regional markets across May, leading to no change to the annual growth rate of 5.3 per cent, and a median price point of $642,000.
Utilising $750,000 as a baseline price point, Anderson commented that regional markets offered the “highest probability of your $750,000 budget being sufficient to enter all markets, ranging from the lowest median of $409,000 in the Northern Territory and the highest at $672,000 in Queensland”.
Within the capital city markets, HTW reported that the strongest performing capital city, Perth, recorded an “astonishing 22nd consecutive month of growth”. Even though Western Australia is still Australia’s most affordable state, it has seen annual growth of 20.68 per cent and low stock levels.
Adelaide and Brisbane also saw strong growth over the year, reporting value gains of 14.49 per cent and 13.69 per cent respectively, with HTW noting that the two cities, alongside Perth “showed the most significant decline in total listings over the past year, and the most relative affordability”.
While housing prices in Sydney rose by 7 per cent since May 2023, HTW described Melbourne’s 0.87 per cent annual growth as “static”, with house prices in the capital remaining 3.08 per cent below their March 2022 peak.
Nonetheless, the firm stated that “Sydney and Melbourne may both be able to boast an ability to absorb the higher listing activity”, with Melbourne in particular presenting “more choice for home buyers with 21.4 per cent more listings in April 2024 than the same time last year”.
Taking the title as the poorest performer of 2024, Hobart reported growth of -1.93 per cent over the year. Still, the state’s prices are up 34.9 per cent since March 2020, and are indicative that “every property market differs and behaviours across the country vary depending on the drivers”.
Reflecting on the report’s findings, Anderson said that “despite the unrelenting cost-of-living pressures, systemic and structural supply issues, housing affordability and unsustainable wage growth, across the nation property still rules supreme”.
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