Spring 2024 Selling Season in Australia: A Mixed Outcome for Buyers and Sellers

The 2024 spring selling season painted a varied picture for Australia’s property market, bringing opportunities for buyers while posing challenges for sellers. According to CoreLogic’s December Housing Chart Pack, sales volumes fell short of expectations, while the rental market continued to stabilise after years of high growth. Here, we explore key trends, statistics, and the implications for buyers, sellers, and renters.

Lower Sales Volumes Reflect Softer Seller Conditions

For sellers, Spring 2024 proved difficult compared to previous years. National sales volumes were 4% lower than the historic five-year average, translating to a quieter market overall. Regionally, the disparities were stark. Sydney saw a 15.1% decline in sales volumes versus historic levels, mirroring ongoing challenges for the city. Yet Adelaide defied the trend, experiencing growth of 15.8% above average. These regional differences highlight the uneven nature of the property market across the country.

Listings, conversely, grew, with total volumes rising 10.6% nationally during the spring period. Perth, for example, marked a significant change with a 1.2% annual increase in stock levels in the four weeks to 1 December—a first for the city in 2024. This rise in available properties provided buyers with greater choice but further tilted the market in their favour.

Properties Took Longer to Sell

The length of time properties spent on the market also increased, reflecting softer sales. The median days on market rose to 32 days in the three months to November, up from 28 days in the three months to August, and higher than the 27-day average during spring 2023. With more stock and fewer buyers, sellers found it harder to offload properties quickly, often facing reduced competition among prospective purchasers.

Despite these challenges, vendor discounts held steady. Sellers typically accepted a median discount of -3.6% nationally, unchanged from last spring. This steadiness may point to sellers’ reluctance to concede further, despite tougher conditions.

Rental Growth Slows Amid Affordability Pressures

While house sales softened, the rental market also continued to cool. Over the 12 months to November, rental growth slowed to 5.3%, the smallest annual increase since April 2021. The slowdown was even more pronounced in capital cities, where rents rose just 0.2% over the three months to October, compared to a 0.9% increase in regional areas.

Several factors contributed to this deceleration. Affordability constraints have made it difficult for renters to take on higher payments, leading to an increase in shared living arrangements or delayed decisions by young Australians to move out of family homes. Additionally, a gradual slowdown in net overseas migration and the completion of backlogged construction projects helped moderate rental demand, relieving some pressure from the market.

Gross rental yields remained at 3.7% nationally, unchanged over the past two years. However, individual performance varied across cities. Markets like Brisbane, Adelaide, and Perth saw yields decline, while Canberra, Darwin, Hobart, and Melbourne witnessed small increases. Sydney’s rental yields, meanwhile, remained steady.

Buyers Reap the Rewards of Spring 2024

While sellers navigated a tougher environment, buyers emerged as the season’s winners. Increased listings, slower sales, and longer selling times gave them more negotiating power and a wider selection of properties to choose from. CoreLogic’s economist Kaytlin Ezzy noted that “higher stock levels and lower-than-usual sales volumes” tipped the scales in favour of buyers, particularly in an environment where market activity was subdued.

Cities like Perth benefitted buyers even further by offering rising listing numbers alongside markets that saw declines in home values. Conversely, premium markets such as Sydney continued to experience drops in the upper quartile of home values by -1.6%, offering opportunities for buyers to secure properties at reduced prices.

Looking Ahead to 2025

As Australia heads towards 2025, the housing market is likely to see further stabilisation. CoreLogic anticipates a small rebound in rental growth during the typically strong first quarter of the year, but sustained affordability pressures suggest any uptick will be short-lived. For sales, the broader slowdown in growth suggests that buyer-friendly conditions could extend into the year ahead, giving buyers more financial breathing space after years of rapidly rising prices.

With trends continuing to vary by region, prospective buyers and sellers should approach the market with careful research. Whether you are exploring opportunities to invest, purchase a new home or strategise your sale, understanding your location’s specific dynamics will be key in achieving the best outcomes.

The spring of 2024 demonstrated that Australia's property market is undeniably changing. Armed with these insights and CoreLogic’s comprehensive data, you’ll be better prepared to make astute property decisions going forward.

1. CoreLogic. (2024). Spring selling season proves a win for buyers. Retrieved from CoreLogic

2. Lontayao, R. (2024). Spring selling season sees lower sales, higher stock levels. Mortgage Professional Australia. Retrieved from MPA Magazine

3. Suljanovic, A. (2024). Sellers experienced a less successful spring season. Mortgage Business. Retrieved from Mortgage Business