Australian house values rose 1.3% higher in November, however it was the slowest growth rate since January this year when values rose 0.9%.
National housing values have grown 22.2% higher over the past year, adding about $126,700 to the median value of an Australian home, according to Corelogic.
There has been a notable trend towards milder price growth since a cyclical peak in the rate of growth in March, when housing values rose 2.8%.
CoreLogic research director Tim Lawless said the slowdown in the pace of growth was due to a number of reasons.
“Virtually every factor that has driven housing values higher has lost some potency over recent months,” he said.
“Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”
House value performance varied across the capital cities, with Brisbane and Adelaide now recording the fastest pace of growth, while conditions across Sydney and Melbourne have slowed more sharply.
Brisbane and Adelaide were the only capital cities yet to experience a slowdown, with the monthly rate of growth reaching a new cyclical high across both cities in November.
“Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from COVID lockdowns and a positive rate of interstate migration is fuelling housing demand,” Lawless said.
“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective.”
On the supply front, total stock available for sale across Adelaide was down 32% in November compared to the five-year average, and down 33.9% across Brisbane.
Stock levels were more normal across Sydney and Melbourne in recent weeks, with Sydney total listings sitting 2.6% below the five-year average, while stock levels across Melbourne were 7.9% above the five-year average.
Across regional Australia, the strongest growth trends remain skewed towards the coastal and lifestyle markets with NSW’s Southern Highlands and Shoalhaven recording the highest quarterly growth rate (9.7%) followed by the Hunter Valley (excluding Newcastle) (8.9%) and Tasmania’s Launceston and North East region (7.7%).
It comes as the majority of Australia’s 25 largest non-capital city regions reported double-digit annual house value growth over the past year.
Demand for housing across regional markets continues to benefit from the rise in popularity of remote working arrangements, along with renewed demand for coastal and lifestyle properties and more affordable housing options.