Australian housing prices grew just 0.1% in November, the weakest national result since January 2023, according to CoreLogic data.
The telltale signs include more properties being listed for sale, declining auction clearance rates and affordability constraints impacting buyers.
Nationally, housing prices rose 5.5% over the past year, pushing the median value to A$812,933. And yet November saw declines in key markets. Melbourne prices fell 0.4% while Sydney saw a 0.2% drop.
On a quarterly basis, four of the eight capitals, including Melbourne, Darwin, Sydney and Canberra, reported declining values, with Melbourne leading the fall at 1%.
More listings
Increased listings have contributed to the slowdown. Over the four weeks to November 24, advertised stock levels in capital cities were up 16% compared to the end of winter.
Perth and Adelaide saw significant increases of 33% and 25%, respectively, while Sydney and Melbourne listings reached their highest levels for this time of year since 2018.
CoreLogic anticipates further price declines in 2025 as economic pressures persist.
While interest rate cuts are expected next year, they are unlikely to stimulate immediate recovery. Analysts warn affordability challenges, diminishing savings buffers and rising unemployment could exacerbate the downturn.
Perth continues to lead with a 1.1% rise in November and 3% quarterly growth, though this represents its slowest rate since April 2023. National rents, meanwhile, saw modest growth of 0.2% in November, marking the smallest annual increase since April 2021.
It's good news for those looking to snap up land holdings in what is increasingly becoming a favourable market, particularly in the west.