Though, some states appear poised to benefit more than others, with property prices in Perth tipped to surge 25% in 2024 and those in Melbourne expected to fall 1.7%.

Come 2025, house prices in Australian capital cities are forecast to rise 5.5%, with Perth again in the lead (+7.4%), trailed by Brisbane (+6.4%), Sydney (+6%), and Adelaide (+5.7%).

A supply-demand imbalance will likely to continue be the main driver of house prices in the near-term future, although there are signs the market is cooling somewhat.

House prices across the nation climbed 0.5% in July, marking an 18th consecutive month of price growth and pushing Australia's median dwelling value to a record $798,000.

Narrowing in on Melbourne, Hobart, and Darwin, however, house prices slipped over the three months ended July, while price growth slowed to 1.1% quarter-on-quarter in Sydney.

Spring selling season 2024: A good time to buy or sell?

With the spring selling season approaching, a lift in sales and listing activity is expected across the country in the coming months.

Historically, the spring selling season has brought an average uptick of 18% in new listings and an average 8% increase in sales over the last decade, according to CoreLogic data.

However, a rise in listings won't necessarily translate to more demand from buyers in cities such as Melbourne, Hobart, and Sydney, warns CoreLogic head of research Australia Eliza Owen.

She notes that sales typically decline during spring when the market is on a downward trend, as was the case in Sydney and Melbourne in 2015, 2017, and 2018.

"Looking at spring of 2024, it is possible we could see demand come under pressure from a continuation of high interest rates, slowing economic conditions and low consumer sentiment, and sellers may struggle in two of the state capitals in particular," Ms Owen said.

CoreLogic compared the number of sales over the three months to July against the number of new listings coming to market.

It noted that markets with more new listings than sales could be considered buyer's markets, while those with more sales than listings could be considered seller's markets.

Melbourne and Hobart currently have more new listings than sales, indicating potential buyer's markets, while the opposite is true for cities such as Perth and Adelaide.

"Perth and Adelaide sellers are heading into the spring selling season in a powerful position, with total stock on the market at very depleted levels and there has been more than one sale for each new listing added to the market in the past few months," Ms Owen said.

Meanwhile, some areas of Melbourne, Hobart, and Sydney are experiencing a higher number of listings compared to recent historical averages.

"For some sellers in Melbourne, Hobart, and Sydney, spring does not necessarily mean it is a good time to sell," Ms Owen said.

"Prospective vendors should assess the state of their local market, as they may find there is more competition for sellers in the months ahead."

Photo by Nathan Hurst on Unsplash

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