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.
Perth continues to stand out from the other capital cities, with the monthly pace of value growth accelerating through November to record its fastest rate of appreciation since March of 2021.
The strongest growth conditions are concentrated across Perth’s lower price points, with the lower quartile rising in value by 6.3% over the past 3 months, compared with a 4.7% rise across the upper quartile.
Extremely low stock levels, a relatively healthy level of affordability, high migration from both overseas and interstate migration, and strong economic conditions are all factors supporting housing conditions.
Demonstrating the severity of the supply-led imbalance, Perth listings are almost 40% below the five-year average, while estimated purchasing activity is a bit over 25% above the five-year average.
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.
The same can’t be said for Perth, Brisbane, and Adelaide, where advertised stock levels remain remarkably low.
You may also want to read:
National Housing Market Update [Video]
Adelaide Housing Market Update [Video]
Sydney Housing Market Update [Video]
Brisbane Housing Market Update [Video]
Melbourne Housing Market Update [Video]
