Insights from CoreLogic’s January 2025 Housing Market Report
By Leigh Martinuzzi MPG – eXp | Luxury
The first CoreLogic Housing Market Report of 2025 offers a comprehensive snapshot of the Australian property market as we transition into a new year. While the market continues to show resilience, the report highlights some fascinating trends that provide valuable insights for property owners, buyers, and sellers alike.
National Trends
The national property market has seen a gradual cooling, with price growth slowing in late 2024. December marked a notable softening, with monthly price growth flatlining in many regions. However, on a year-on-year basis, dwelling values across Australia rose by an impressive 4.9%, showcasing the market’s resilience amid economic pressures.
Regional vs Capital City Performance
Regional areas have continued to shine, with dwelling values rising faster than in many capital cities. Buyers seeking affordability and lifestyle options have driven strong demand in regional markets, where supply constraints remain a persistent issue. However, some regional markets have started to stabilise, with growth moderating compared to the early 2024 highs.
Capital Cities: A Mixed Bag
In the capitals, the picture is varied. Brisbane and Perth remained standout performers, with year-on-year growth outpacing other cities. Conversely, Sydney and Melbourne, while still growing annually, experienced more significant slowdowns in the final months of 2024. These cities face heightened affordability challenges, but their desirability ensures they remain key players in the national market.
Housing Supply and Demand
CoreLogic’s report reinforces the ongoing supply-demand imbalance across the country. Building approvals remain well below the levels needed to address Australia’s housing shortage, with demand continuing to outstrip supply in key markets. This scarcity is particularly acute in lifestyle destinations like the Sunshine Coast, where buyer interest remains robust despite rising prices.
On the Sunshine Coast, housing values climbed steadily throughout 2024, supported by strong population growth and infrastructure development. The median dwelling value now exceeds $1 million, with regional appeal keeping the market buoyant even as other areas cool.
Rental Market Dynamics
The rental market continues to face significant pressure, with vacancy rates at historic lows in many regions. While rental price growth has slowed compared to the rapid increases of 2023, affordability remains a challenge for tenants. The report highlights the importance of investment activity to address rental supply shortfalls, particularly in areas like the Sunshine Coast, where demand remains elevated.
Looking Ahead to 2025
The CoreLogic report offers a cautiously optimistic outlook for 2025. While affordability challenges persist, the potential for interest rate cuts later in the year could stimulate buyer demand and provide relief to borrowers. However, CoreLogic notes that any rate cuts are unlikely to significantly close the gap between income levels and property prices.
For sellers, the current market dynamics present an opportunity to achieve strong results, particularly for well-presented and strategically priced properties. Buyers, meanwhile, may find the first half of 2025 an opportune time to act before competition intensifies with potential rate cuts.
Final Thoughts
CoreLogic’s January 2025 Housing Market Report paints a picture of a resilient yet evolving property market. For those considering a move, staying informed about these trends is essential to make the most of the opportunities available.
If you’re looking to buy, sell, or simply explore your options, reach out to the team at Martinuzzi Property Group. We’re here to provide the insights and guidance you need to navigate this dynamic market.
