September’s Housing Market Boom: Key Stats and Insights

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September’s Housing Market Boom: Key Stats and Insights

National house prices rose again in September, whereas unit prices fell.

According to the most recent My Housing Market data, the national capital city median house price climbed by 0.3% to $1,149,547 during the September and August quarters.

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Perth was the top capital city performer for the quarter, with prices growing by 1.2%, followed by Adelaide (1.1%), Brisbane (0.5%), Darwin (0.4%), and Melbourne (0.3%).

Prices, however, fell by 0.1% in Canberra, 0.3% in Sydney, and 0.5% in Hobart over the month.

House prices in several capitals remain considerably higher over the year ending in the September quarter of 2024, with Perth being the top performer, with an increase of 26.9%, Adelaide increased 17.3%, Brisbane increased 16.2%, and Sydney increased 5.4%.

Melbourne’s annual house prices are down by 0.7%, followed by Hobart at 0.8%, Canberra at 2.7%, and Darwin at 4.3%.

Median House Prices September 2024

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Median Unit Prices September 2024

National unit prices fell 0.2% in September to $657,112.

However, during the September quarter of 2023, the national unit price rose 6.1%.

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Brisbane and Perth were the biggest performers in September, with unit prices climbing by 1.1%.

All other capitals’ prices declined, with Melbourne down 0.1%, Adelaide down 0.3%, Canberra down 0.4%, Sydney down 0.5%, Hobart down 3.9%, and Darwin down 4.2%.

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Perth, Brisbane, and Adelaide continue to have the highest annual unit price growth rates until September 2024, increasing by 26.9%, 24.5%, and 21.1%, respectively.

Sydney’s annual unit prices are now 4.2% higher, while Melbourne’s are up 1.0%.

Conclusion

However, annual unit prices in Canberra, Darwin, and Hobart have decreased by 2.7%, 4.7%, and 5.0%, respectively.
Capital city housing markets delivered mixed results in September, with Perth and Brisbane continuing to see substantial price increases for both houses and units.

Melbourne’s home price outcomes have been modest to flat in recent months, while Sydney prices have fallen somewhat after a year of steady growth.

The smaller cities of Hobart, Darwin, and Canberra continue to underperform, with prices largely falling.

However, the early spring housing market has remained lively overall, with many seasonal listings and reasonably strong weekend home auction sales.

National property prices are expected to rise in the next months, led as usual by the continued boom markets of Perth, Brisbane, and Adelaide, with strong buyer and seller activity reflecting the affordability benefits that exist in those cities.

Buyers can still find value in Sydney and Melbourne, where prices are now lower than or comparable to prior peaks recorded in early 2022.

Growth rates for the rest of 2024 is expected to continue generally favorable, but they are unlikely to surpass the exceptional results reported throughout the winter and spring of last year, which indicated a robust, recovering market situation fueled by an increase in buyer activity.

Underlying drivers will continue to support housing market activity, with the risk of higher interest rates decreasing as recent monthly inflation statistics fell substantially and approached the RBA target rangeā€”at least for now.

However, the national economy is strong, with low unemployment rates and rapid job growth generating record salary increases.

Continuing high levels of migration in the short term would worsen the current chronic housing undersupply that supports high prices and low vacancy rates in capital city rental markets; however, early signs of increased rental supply and decreased tenant demand are appearing.

High rents and higher prices offer clear incentives for first-time home purchasers and investors seeking substantial investment returns.

Capital city housing markets produced another mixed bag of price outcomes in the September quarter, with the sharp diversity of capital cities cementing as Perth, Brisbane, and Adelaide remain clear leaders in monthly and annual price growth.

Melbourne and Sydney remain apparent underperformers among the major capitals, with home price growth being decreasing and forecast to pick up over the remainder of the spring selling season.