For the first time in two years, Australia’s property prices dropped to a national average level in December. Data from CoreLogic shows the median value of property sold in the last month of 2024. It was $815,000 after a price drop of almost 0.1 per cent.
CoreLogic’s chief economist Tim Lawless says it does set the scene for a soft start to 2025. Analysts predict property prices will continue to stabilize in early 2025. However, according to predictions, prices could rise again if the Reserve Bank cuts interest rates in May.
Australia’s biggest cities, including Melbourne, are contributing to the national average. Melbourne’s prices dropped heavily in 2024, making it the third cheapest capital city in the world. Meanwhile, prices in smaller capitals like Perth and Adelaide are still soaring. The city of Churches is the country’s third most expensive capital.
According to Lawless, the prices are growing slowly everywhere, however, there is still a lot of variance and variability in the statistics. Overall, in 2024 property prices rose nationally almost 5 per cent. The past few years have left the owners out of reach. CoreLogic’s Mr Lawless says that we have seen extraordinary growth. We have seen an almost 30 per cent rise during the pandemic—even a 70 per cent rise in markets like Perth Brisbane or Adelaide. We haven’t seen income rise anywhere at this rate.
Many Australians find themselves out of the property market entirely. However, some get assistance from others, including their parents, to get in. For 2025, both sellers and buyers will be watching the reserve bank.
