Home values declined slightly in Melbourne, Sydney, Canberra, and Darwin in October, according to a report by CoreLogic this month.
CoreLogic’s national home value index grew 0.3% overall, as these declines were offset by rising values in Perth, Adelaide, and Brisbane. These cities saw gains of 1.4%, 1.1%, and 0.6%, respectively.
“A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation for stronger conditions across the lower value cohorts of the market,” said CoreLogic research director Tim Lawless.
Darwin’s decline was the most significant at 1%, while Canberra, Melbourne, and Sydney’s values decreased by 0.3%, 0.2%, and 0.1%.
The report estimates that third quarter housing sales in state capital cities were down 7.5% from the previous quarter, and 1.6% lower than Q3 2023.
Advertised inventory has increased 12.7% across September and October. Perth saw the largest increase, though Perth, Adelaide, and Brisbane’s inventory lagged more than 20% behind October’s five-year average.
“These markets remain well and truly in favour of sellers, although the balance is starting to gradually improve,” said Lawless.
While Canberra’s market is shifting towards buyers, the high cost of living prevents some buyers from saving up a deposit.
“Affordability constraints are really clashing with the economic environment where you've got high cost-of-living pressures, lower savings rates for households, and that means that people are struggling to put a deposit together in some cases,” said Eliza Owen, CoreLogic Australia’s head of research.