Housing data provider, CoreLogic has reported the first monthly decline in housing prices for almost two years, but while this decline dragged the quarter into negative territory, for the rest of 2024 prices remained strong.

In fact, they reported an annual increase in Australian home values of 4.9 per cent in 2024, adding approximately $38,000 to the median value of a home.  

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

“This result represents the housing market catching up with the reality of market dynamics," he said.

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

Local housing trends

There was good news for regional housing on the national front, with values reported as being up six per cent over the year, but this did not reflect on the local situation according to Katherine Gaff from BEYOND 21 Real Estate in Gilgandra.

“When we’re doing appraisals using data from the last year, we’ve seen no significant change here,” Ms Gaff said.

“For instance, we sold a property in early 2024, now, with the owner considering selling again, the appraisal sits at the same figure she paid last year.

"There’s no change.

"If anything, prices have very slightly decreased.”

She added that the strong post-COVID activity has now cooled.

“Things were moving quite well directly post-COVID, in 2022 and 2023, and even into early 2024,” Ms Gaff said.

“Properties were selling at good prices but in the last six to eight months, there’s been no movement.

"The market has stagnated.”

In regional New South Wales, house prices have experienced significant shifts over the past decade.

Prices peaked in May 2022 but have since declined by 2.8 per cent from that peak.

Despite this recent dip, the long-term trend shows strong growth, with property values increasing by 98.8 per cent over the past ten years and an impressive 50 per cent rise since the onset of COVID-19.

Rental market remains strong

According to CoreLogic, rental markets also finished the year on a softer note, with the national rental index up just 0.1 per cent in the month of December and 4.8 per cent higher over the calendar year. 

CoreLogic Research Director, Tim Lawless, said 2025 is shaping up to be a better year for prospective house buyers.

Ms Gaff said she sees this trend locally as well.

“Rentals are increasing."

"We’re always pushing the market on that one,” she said.

“Houses are turning around fairly quickly, with solid applicants and good returns.

"This might be because people are priced out of buying and don’t have an option but to rent, which squeezes the rental market.”

She also noted the unpredictable nature of rental property availability.

“It seems to come in waves," she said.

"We might not have a listing for three, four, or five months, and then suddenly, we’ll get four or even six properties available at once.”

Mr Lawless said the latest rental figures showed the smallest December quarter rise in rents for some time.

“On a rolling annual basis, we haven’t seen an annual change this small since the 12 months ending March 2021, following the early COVID patch of weakness,” he said.

On a positive note, CoreLogic’s report was upbeat about the future for potential homeowners, predicting housing to become more affordable as value growth stalls and incomes rise.

“2024 saw a marked deterioration in housing affordability, with the dwelling value to income ratio equalling record highs, while mortgage serviceability and rental affordability worsened to record levels,” the report stated.

“These metrics should show an improvement in 2025, as income growth outpaces growth in housing values, interest rates reduce, and rents stabilise or even fall.

"Lower cost-of-living pressures should provide some additional support for housing demand and could help to keep a floor under values in 2025.”