Home prices marked their fifth consecutive month of growth in July, but it appears gains have started to slow down due to the increasing number of listings, particularly in Sydney.
Over the month, dwelling prices increased 0.7% — since the floor in February, the national home value index is up 4.1%.
Still, home values remain 5.3% below the April 2022 peak but Perth, Adelaide, and regional South Australia have recorded their peak in the current cycle in July.
The flow of new listings across capital cities softened the overall median dwelling price growth in the month — over the four weeks ending 30 July, listings in state capitals increased by 3.9%, defying the usual seasonal downtrend during winter.
CoreLogic research director Tim Lawless said Sydney manifested the biggest increase in listings and the most substantial slow down in price growth in July.
“After leading the upswing, the monthly pace of growth in Sydney housing values has halved from a recent high of 1.8% in May to 0.9% in July,” he said.
Mr Lawless said an increased flow of new listings provides more choice and may be working to reduce some of the urgency felt among prospective buyers.
“Sydney has also seen a significant rise in the number of fresh listings added to the market, 9.9% higher than the same time last year and 18.0% above the previous five-year average.”
On the other hand, Brisbane and Adelaide saw their monthly price gains accelerate in July, hitting 1.4%.
While new listings also increased in these two cities, their current supply of homes remained below a year ago and the previous five-year average.
Among capital cities, only Canberra reported a decline in home values over the month.
Mr Lawless said the slowdown in value growth has mostly been driven by an easing in gains across the more expensive segment of the housing market.
“Some resilience in growth across the middle and more affordable end of the market aligns with housing finance data which has shown a stronger bounce back in the value of lending to first-home buyers and investors over recent months,” he said.
“These segments tend to be more active across the middle to lower end of the pricing range where competition to purchase a home may be more intense.”
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
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