Welcome to your September market update, brought to you by @realty, your trusted partner in real estate. In September, @realty transacted over $408 million in property, reflecting the strength of the @realty network.
October Market Report
Housing affordability in Australia has hit a record low
According to PropTrack's latest report. High mortgage rates, not seen since 2011, combined with a $50,000 rise in the national median home price over the past year, have made homeownership increasingly unattainable. A median-income household earning $112,000 annually can now afford only 14% of homes sold, a sharp decline from 43% just three years ago.
New South Wales, Victoria, and Tasmania are facing the worst affordability conditions.
With Sydney's median house price at $1.5 million. Even in Victoria and Tasmania, affordability is below the national average, with households able to afford less than 10% of homes. Western Australia remains the most affordable state, attracting buyers and fueling price growth.
Saving for a deposit remains a significant challenge
For first-home buyers, while rising incomes have not kept pace with soaring prices and mortgage rates. Although lower interest rates could offer short-term relief, long-term improvement in affordability will require structural changes, including building more homes and reducing stamp duties to make housing more accessible.
Market Momentum Slowing
After years of rapid price growth, the Australian property market is finally showing signs of losing momentum. According to CoreLogic's latest Home Value Index, only half of Australia's capital cities—Sydney, Brisbane, Adelaide, and Perth—saw price increases over the September quarter, with every other city recording declines.
Even in hot markets like Perth and Adelaide, growth has slowed. Sydney's median home price rose by just 0.5% in the September quarter, the lowest rate of growth since early 2023, and this cooling trend is expected to continue. Over the next six months, experts anticipate a continuation of this slowdown, driven by an increase in housing stock, slower population growth, and the possibility of an interest rate cut.
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