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END OF YEAR REPORT - 2024

Raine & Horne Mona Vale's 2024 Performance

Sales Market

Sales: 114

Worth Of Property Sold: $242,320,805

Average Sale Price: $2,144,432

Average Days on Market: 41

Highest Sale Price: $5,500,000

Total Groups Through at Inspections: 5,765

Awards: 11

Core Area Ranking: #1

Rental Market

Leased: 50

Average Days on Market: 16

End Of Year Report

2024 Australian Housing Market: Resilience Amid Challenges

The Australian housing market showcased remarkable resilience in 2024, defying elevated interest rates and global economic uncertainty. According to CoreLogic’s Best of the Best report, home sales increased by 8% compared to 2023, with 528,000 transactions nationally over the 12 months to November. This figure also represents a 6% rise above the five-year average.

Home Values Climb Despite Challenges

Home values mirrored the sales growth, rising by 5.5% during the same period. The combined value of Australian residential properties surpassed $11 trillion, underscoring the market’s strength. However, CoreLogic’s Head of Research, Eliza Owen, noted that the market’s early momentum in 2024 slowed due to declining demand, increased supply, and fluctuating inflation and interest rate expectations.

While the national CoreLogic Home Value Index eked out a 0.1% increase in November, the year’s overarching theme was variability. Annual value changes ranged from a 21% surge in Perth to a -2.3% decline in Melbourne, with regional markets displaying similar diversity. Regional WA led gains with a 15.5% increase, contrasting with a -2.7% dip in regional Victoria.

Buyers Seek Affordability

Elevated interest rates drove many buyers to the more affordable end of the market. The bottom quartile of property values rose by 10.3% nationally, outperforming higher-priced segments. In capital cities, Perth dominated the top growth house markets, with suburbs under $661,000 leading the charge. Similarly, unit markets in Perth, Brisbane, and Adelaide offered strong value, with all top-performing suburbs priced below $600,000.

Top Sales and Value Growth

High-end suburbs continued to dominate national sales. Sydney’s Eastern Suburbs, Melbourne’s Toorak, and Queensland’s Noosa Heads and Mermaid Beach featured prominently. Bellevue Hill retained its title as Australia’s most expensive suburb, boasting a median house value of nearly $10 million.

Beachlands in WA claimed the highest growth in house values, rising by 38.4%, while Dolphin Heads in QLD led unit markets with a 52.8% increase. Perth also dominated house value growth, with all top 10 suburbs recording gains above 30%. Conversely, Melbourne’s suburbs led the list of weakest performers, with Millner in Darwin suffering the largest decline of -11%.

Rental Market Trends

Rental growth softened in 2024, with annual rent value increases slowing to 5.3%, down from 8.1% the previous year. Perth’s Middle Swan led house rent growth at 17%, while unit markets in Melville saw a 19.5% rise. High living costs and reduced migration tempered rental demand, a trend expected to persist into 2025.

What Lies Ahead for 2025?

CoreLogic anticipates a subdued start to 2025, with national home values potentially dipping before stabilizing later in the year. Analysts predict a gradual reduction in the cash rate, which could reignite demand in the second half of 2025. Despite challenges, wage growth and easing inflation are expected to provide tailwinds for buyers and renters alike.

Melbourne and Hobart may see modest value gains as affordability improves, while growth in high-performing markets like Perth and Adelaide could taper off. New housing construction remains limited, likely supporting property values in the coming year.

For a deeper dive into suburb-level performance and expert insights, download CoreLogic’s 2024 Best of the Best Report at corelogic.com.au.

Realestate.com.au's input on the market next year: 

The Australian real estate market in 2025 is expected to navigate high interest rates, with experts predicting potential cash rate reductions in the second half of the year. Buyer demand will likely remain strong in localized markets such as Adelaide, Brisbane, and some regional areas, while attached dwellings like apartments and townhouses gain popularity due to affordability. Listings are expected to continue increasing, normalizing after the first quarter. Markets like Darwin, Melbourne, and Ballarat present potential for price growth, offering affordability and rental yields. However, economic uncertainties, including inflation and global influences, could impact housing trends throughout the year.

Our office will be closed from 5PM December 18th, we will reopen at 8:30AM on January the 6th. Wishing you a Merry Christmas and a Happy New Year! Information derived from CoreLogic and REA.