House prices continued to climb in November but at a much slower pace than earlier in the year as the market faces a number of constraints.
The CoreLogic home value index rose 1.3 per cent in November, its 14th consecutive monthly increase.
Prices are now 22.2 per cent higher than 12 months earlier, adding around $126,700 to the median value of an Australian home.
However, the monthly pace of house price growth is less than half that seen at the peak in March, when prices rose by 2.8 per cent.
“Virtually every factor that has driven housing values higher has lost some potency over recent months,” CoreLogic research director Tim Lawless said.
“Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”
House price growth in Sydney and Melbourne has slowed rapidly – up 0.9 per cent and 0.6 per cent respectively in November – whereas in Brisbane and Adelaide sharp gains were recorded.
The 2.9 per cent rise in Brisbane home values in November was the highest since October 2003, while in Adelaide where prices rose 2.5 per cent – the fastest rise since February 1993.
“Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from COVID lockdowns and a positive rate of interstate migration is fuelling housing demand,” Mr Lawless said.
“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective.”
CoreLogic National Home Value Index for November
National – up 1.3 per cent per cent in the past month, up 22.2 per cent in the past year
Sydney – up 0.9 per cent per cent, up 25.8 per cent
Melbourne – up 0.6 per cent, up 16.3 per cent
Brisbane – up 2.9 per cent, up 25.1 per cent
Adelaide – up 2.5 per cent, up 21.4 per cent
Perth – up 0.2 per cent, up 14.5 per cent
Hobart – up 1.1 per cent, up 27.7 per cent
Darwin – down 0.4 per cent, up 16.7 per cent
Canberra – up 1.1 per cent, up 24.5 per cent
Combined capitals – up 1.1 per cent, up 21.3 per cent
Combined regional – up 2.2 per cent, up 25.2 per cent