CoreLogic’s daily dwelling values index, which tracks value growth across the five major capital cities, recorded stalling momentum in April.
Across the five major capitals, values rose by only 0.2% over the month, down from 0.4% growth in March.
As illustrated below, the slowing in growth was broad-based, led by Sydney, Melbourne, and Adelaide, whereas Brisbane and Perth were stronger.
Home values rose by 0.9% over the April quarter across the five major capitals, with each major market recording similar growth.
In the year to April 2025, values rose by 2.6% at the five-city level. However, there was wide variation in growth, with Sydney (0.8%) and Melbourne (-2.3%) lagging behind their smaller capital city counterparts.
The following chart plots value growth on a rolling 28-day basis across the major markets.
The slowing in momentum has been driven by Sydney and Melbourne, where growth has stalled.
The slowing in value growth matches the commensurate slowing in auction clearance rates, which have fallen to their lowest level this calendar year.
Buyers are clearly sitting on the sidelines, waiting for the RBA to cut interest rates.
First-time home purchasers may also be waiting for the results of the impending federal election, with both Labor and the Coalition promising generous incentives.
The most recent interest rate pricing from financial markets indicates that the RBA will almost certainly cut the official cash rate at its May monetary policy meeting.
Markets forecast three to four more rate cuts this year.
If these forecasts come true, homebuyers will awaken and usher in another price upswing.
Labor’s first home buyer incentives, which take effect on January 1, 2026, will fuel the housing market.
