National home values record first decline in almost two years

Source: CoreLogic

CoreLogic’s Home Value Index (HVI) ended the year on a negative note, with values down -0.1% nationally over the month after peaking in October and holding flat in November.

CoreLogic’s research director, Tim Lawless, said the decline in values is no surprise.

“This result represents the housing market catching up with the reality of market dynamics.”

“Growth in housing values has been consistently weakening through the second half of the 2024, as affordability constraints weighed on buyer demand and advertised supply levels trended higher.”

Slowing to just 0.7% through the second half of the year, with five of the eight capitals recording a decline in values between July and December.

Regional housing markets finished the year on a stronger note, with values up 6.0% over the year, compared with a 4.5% rise across the combined capital index.

Rental markets also finished the year on a softer note, with the national rental index up just 0.1% in the month of December to be 0.4% higher through the December quarter.

However, the annual change in national rents remains more than double the pre-pandemic decade average at 2.0% per annum.

Rental trends are likely to remain subdued in 2025 as overseas migration returns to more normal levels and the average household size continues to trend higher towards pre-COVID levels.

CoreLogic Home Value Index tables

Top 10 Capital city SA3’s with highest 12-month value growth - Dwellings

Top 10 regional SA3’s with highest 12-month value growth - Dwellings