The Australian property market is experiencing a downturn, with house prices expected to fall in 2025 due to interest rate cuts and a weakening trend in Australia’s housing market. Despite recent interest rate cuts, CoreLogic’s Eliza Owen predicts that house prices will continue to fall next year.
Overview of the Situation
The property market is experiencing a downturn, with house prices expected to fall in 2025. This decline is attributed to various factors, including interest rate cuts and a weakening trend in Australia’s housing market.
Recent Developments
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In November, national house prices rose by 0.1%, which is the weakest result since January 2023.
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Four of the eight capitals recorded a fall in values in the quarter, indicating a loss of momentum in the market.
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CoreLogic data shows that although house prices nationally rose in November, the market is losing steam and prices will continue to fall next year despite interest rate cuts.
Market Trends
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The national rental index has seen flat growth, with rents rising only 0.2% in November.
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The property market is experiencing a shift towards a “buyer’s market,” with more homes being listed for sale and lower auction clearance rates.
Expert Insights
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Eliza Owen, CoreLogic’s head of research, predicts house price falls in 2025 due to interest rate cuts and a weakening trend in Australia’s housing market.
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Brett D’Souza, who attempted to sell his home without an agent, acknowledges making mistakes but doesn’t discourage others from trying.
Key Statistics
- The median value of housing now stands at $812,933.
Conclusion
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House Prices Continue to Lose Steam
National House Price Growth Weakest Since January 2023
Four Capital Cities Recording Quarterly Decline
In a worrying trend, four of the eight capital cities are now recording a fall in values on a quarterly basis. Melbourne, Sydney, Darwin, and Canberra have all experienced declines in house prices over the past quarter.
Interest Rate Cuts Unlikely to Stop House Price Falls
Despite interest rate cuts, CoreLogic’s Eliza Owen predicts that house prices will continue to fall next year. This is due to a combination of factors, including economic conditions putting a strain on households and buyer demand moving lower.
More Listings and Lower Auction Clearance Rates
The market has seen an increase in listings, with more homes being advertised for sale over the past few weeks. However, auction clearance rates have also declined, indicating that buyers are becoming more cautious.
First Home Buyers Need Easier Access to Finance
To address the issue of housing affordability, first home buyers need easier access to finance and the ability to co-share home loans. This will help to increase buyer demand and reduce the strain on households.
Selling a Home Without an Agent: A Risky Business
Some people have been attempting to sell their homes without using a real estate agent. However, this can be a high-risk strategy, as seen in the case of comedian Brett D’Souza, who attempted to sell his home without an agent but ultimately had to call on an agent to complete the sale.
