Mona Vale Blog

YOUR MONTHLY UPDATE - NOVEMBER

Our Monthly Snapshot

Sold: 16
Sales Volume: $28,005,000
Average Sale Price: $1.75M
Average Days On Market: 36.5
Our Search Appearanceson realestate.com.au: 1.27M
Our Buyer Enquiries on realestate.com.au: 875 (156 above market average)

Statistics gathered from the past 30 days, data provided by third parties.

Market Update

A shift in Sydney's Property Trends

In this month's market update we will focus on Domain's latest house price report (28th October, 2024). As of September 2024, the Australian housing market continues to show signs of growth, marking a record-breaking seven consecutive quarters of price gains for both houses and units in major cities. However, the pace of house price growth has notably slowed, with Sydney, Brisbane, Adelaide, and Perth seeing their house prices reach new record highs, though at a reduced quarterly growth rate.

Sydney’s Housing Market: Record Prices Amidst Slower Growth
Sydney’s median house price hit a new high of $1.655 million, up by 0.6% from the previous quarter. This slower quarterly growth rate represents the most gradual increase in the current cycle, signaling that housing affordability challenges are reshaping the market. Annual growth rates are also moderating, suggesting a peak in price gains, with Sydney’s housing market up 6.1% year-on-year. Sydney units have fully recovered from the 2022 downturn, now recording new highs as unit prices climbed 0.9% in the last quarter. View each capital cities most recent quarterly results below:

House:

Capital City	Sep-24	Jun-24	Sep-23	QoQ	YoY
Sydney	$1,654,668	$1,645,414	$1,559,090	+0.6%	+6.1%
Melbourne	$1,024,243	$1,040,105	$1,039,959	-1.5%	-1.5%
Brisbane	$994,945	$980,349	$866,779	+1.5%	+14.8%
Adelaide	$973,336	$934,087	$832,270	+4.2%	+16.9%
Canberra	$1,081,227	$1,094,914	$1,072,572	-1.2%	+0.8%
Perth	$894,842	$868,038	$714,354	+3.1%	+25.3%
Hobart	$709,945	$676,841	$706,299	+4.9%	+0.5%
Darwin	$592,976	$567,033	$629,484	+4.6%	-5.8%
Combined Capitals	$1,155,683	$1,146,755	$1,072,192	+0.8%	+7.8%
Combined Regionals	$623,138	$619,911	$584,476	+0.5%	+6.6%

Source: Domain

Unit:

Capital City	Sep-24	Jun-24	Sep-23	QoQ	YoY
Sydney	$815,258	$808,190	$785,971	+0.9%	+3.7%
Melbourne	$572,491	$569,525	$564,182	+0.5%	+1.5%
Brisbane	$610,321	$590,633	$512,127	+3.3%	+19.2%
Adelaide	$536,180	$520,563	$459,001	+3.0%	+16.8%
Canberra	$565,288	$591,721	$630,174	-4.5%	-10.3%
Perth	$466,548	$462,417	$372,877	+0.9%	+25.1%
Hobart	$520,241	$530,342	$503,577	-1.9%	+3.3%
Darwin	$330,559	$355,986	$366,130	-7.1%	-9.7%
Combined Capitals	$662,521	$656,260	$625,732	+1.0%	+5.9%
Combined Regionals	$478,682	$479,919	$466,800	-0.3%	+2.5%

Source: Domain

Comparative Growth in Capital Cities
Brisbane, Adelaide, and Perth also experienced record-high prices in Q3, though each city’s growth has decelerated. Melbourne and Canberra saw declines, with Melbourne marking its sharpest quarterly drop in two years. Adelaide and Hobart stand out for annual price gains, while Brisbane’s affordability is changing rapidly, making it the second most expensive city for units.

Factors Driving Market Deceleration
Several factors are at play in the shift towards a buyers’ market. A surge in new housing supply, alongside affordability concerns and higher interest rates, has softened buyer demand. With wages failing to keep pace with housing costs and living expenses rising, total supply across capital cities reached its highest since late 2022. Buyers now have more negotiating power, creating an opportune time for prospective homeowners.

Future Market Outlook
As we approach the end of the year, demand is expected to remain moderated unless there’s an interest rate cut. This evolving market is reshaping the landscape for buyers, making it more feasible to find properties at favorable prices. Prospective buyers may benefit from these conditions as total housing stock grows and competitive dynamics shift.

The Domain September 2024 housing report indicates that while record prices remain, the era of rapid price growth has slowed. As Sydney and other cities adjust, buyers and investors should keep an eye on potential shifts that could bring more balanced conditions to the market.

Helpful Buying Tips

This month, we focussed the spotlight on whether "downsizing" or "rightsizing" into a more suitable home is a sensible move. For some homeowners, downsizing is about streamlining their lifestyle and unlocking the equity in their long-term family homes. Others view downsizing as an opportunity to reduce debt and achieve financial independence. However, shifting away from a long-term, familiar neighbourhood can be emotionally charged. So, it's a good idea to spend some time in a new suburb or town to get a feel for its environs and its local amenities before making a move.

We also focused on the value of getting a building inspection before purchasing your next property. A building report will reveal any potentially costly structural or safety issues and ultimately determine whether it's the right property for your next move.

Whether you plan to sell/buy a property to live in or an investment before the end of the year, contact us on 9999 0800 to discuss your real estate plans.