The latest data from PropTrack shows capital cities led the decline, falling 0.16 per cent, while regional areas bucked the trend with a modest 0.12 per cent increase.
Hobart experienced the steepest decline among capital cities, dropping 0.46 per cent, followed by Melbourne and Sydney with falls of 0.30 per cent and 0.21 per cent respectively.
REA Group Senior Economist, Eleanor Creagh, said the softer end to 2024 has carried over into the new year, though the downturn may be temporary.
“While housing demand remained resilient to persistent affordability constraints, the pace of home price growth slowed throughout 2024, culminating in small falls over the past two months,” Ms Creagh said.
Brisbane emerged as the only capital city to record positive growth, with prices increasing by 0.08 per cent, maintaining its position as Australia’s second most expensive capital city ahead of Melbourne and Canberra.
Perth continues to lead the nation in annual price growth, with values up 15.38 per cent over the past year, followed by Adelaide at 12.41 per cent and Brisbane at 10.44 per cent.
However, Perth recorded flat growth in the past month.
The surge in available housing stock has played a significant role in the market slowdown, providing buyers with more options and reducing the urgency to purchase.
Despite recent price falls, the market has shown remarkable resilience since the pandemic began, with national home values now sitting 45 per cent higher than March 2020 levels.
Ms Creagh said the market outlook remains positive, particularly with interest rate cuts on the horizon.
“As interest rates move lower this year boosting borrowing capacities, improving affordability and buyer confidence are expected to drive renewed demand and price growth,” she said.
“However, the stretched starting point for affordability will likely dampen the uplift in prices compared to prior easing cycles, resulting in the pace of home price growth trailing the strong performance of recent years.”
