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2023 is ending with increasingly diverse housing conditions.
While our national Home Value Index reached a nominal recovery in November, the market from city to city and region to region is moving at very different speeds.
The 0.6% rise in the national index in November was the smallest monthly gain since the growth cycle commenced in February, however, it was enough to push the index to new record highs
Melbourne housing values edged 0.1% lower in November.
The trend is better described as a stabilisation, however, technically this is the first month or month fall in values since January.
The unit sector saw a dip of 0.3% and was the primary drag on values, while houses were stable over the month.
On a rolling quarterly basis, Melbourne’s upper quartile house values are showing the weakest result, with values down 0.2%, while house values across the broad middle of the market showed the strongest result, up 1.4%.
The trend suggests housing demand is being deflected from the more expensive price points to the middle of the market as borrowing capacity reduces.
The rise in advertised stock levels has played a key role in slowing housing market conditions in some cities.
Vendor activity started to rise through early winter, which is seasonally unusual, following an extended period where new listings consistently tracked at below-average levels.
The persistent lift in selling activity since June has coincided with slower growth in home values.
Total stock levels have been rising since July, indicating that purchasing demand isn’t quite keeping pace with the rise in vendor activity.
Over the four weeks ending November 26th, advertised stock levels were above the previous five-year average in Hobart, Canberra, Melbourne, and Sydney.
In these cities, market conditions are now in favour of buyers, as higher stock levels provide more choice, less urgency, and greater opportunities to negotiate.
You may also want to read:
National Housing Market Update [Video]
Perth Housing Market Update [Video]
Adelaide Housing Market Update [Video]
Sydney Housing Market Update [Video]
Brisbane Housing Market Update [Video]
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