Home price growth eased in the second half of 2024, with December marking the first monthly decline in national home prices in two years. In a number of regions, homes are have fallen below their peak level.
According to PropTrack's Home Price Index, home prices fell by 0.17% in December after 23 months of consecutive monthly rises.
While prices are still 4.73% higher than December 2023, price growth has slowed since the beginning of 2024. There are a number of factors driving this moderation in prices.
For the majority of 2024, there has been an increase in the number of properties on the market. National new and total listings were both consistently higher than those recorded in the previous year.
At the same time, buyer demand has slightly decreased, as reflected in the longer days on market observed in recent months. This is largely due to slower population growth and interest rate cuts being implemented later than expected.
The improvement in supply and the softening of demand is contributing to a more balanced market which has tempered price growth across the country.
In close to a fifth of SA4 regions, these market conditions have not only slowed price growth but have also pushed prices below their peak levels.
SA4 regions are areas defined by the Australian Bureau of Statistics as regions where people both live and work, and generally have populations between 100,000 and 500,000.
| Regions (SA4) | Peak month | % change in home prices since peak |
| Brisbane - West | Sep-24 | -0.44% |
| Bunbury | Oct-24 | -0.20% |
| Mandurah | Oct-24 | -0.76% |
| Perth - Inner | Sep-24 | -0.12% |
| Perth - South East | Sep-24 | -0.25% |
| Sydney - City and Inner South | Jun-24 | -1.22% |
| Sydney - Eastern Suburbs | Sep-24 | -1.00% |
| Sydney - Inner South West | Jul-24 | -0.92% |
| Sydney - Inner West | Jun-24 | -1.96% |
| Sydney - North Sydney and Hornsby | May-24 | -1.63% |
| Sydney - Parramatta | Oct-24 | -0.17% |
| Sydney - Ryde | Oct-24 | -0.70% |
| Sydney - South West | Oct-24 | -1.10% |
| Sydney - Sutherland | Sep-24 | -0.80% |
| Western Australia - Outback | Sep-24 | -0.99% |
| Western Australia - Wheatbelt | Oct-24 | -1.30% |
In December, home prices in more than half of Sydney's SA4s were lower than their peak levels achieved in 2024. Sydney Inner-West and Sydney - North Sydney and Hornsby regions experienced the largest declines from their respective peaks in June 2024 and May 2024.
Perth - Inner and Perth - South East regions also recorded price decreases after both reaching a price peak in September 2024.
After strong growth in Regional WA from 2022 to early 2024, prices in four of the five SA4 regions have recently declined from their peak. In Western Australia - Outback and Western Australia - Wheatbelt, prices fell by 1.30% and 0.99% since their peaks in October 2024 and September 2024, respectively.
Prices peaked in Brisbane - West in September 2024 but have decreased subsequently, coming in 0.44% lower in December.
In the coming months we expect price growth to continue slowing if current supply and demand trends persist and interest rates remain at their current level.
More areas may experience price declines as choices improve and competition declines which will be positive news for buyers after years of rising prices.
