Australia's Home Prices See Weak Growth Amidst Market Downturn

Australia's home prices rose marginally in November, marking a two-year trend of increases. Perth, Adelaide, and Brisbane saw growth, whereas Sydney and Melbourne experienced declines. Experts cite economic uncertainties and decreased buyer demand as influencing factors for the fluctuating market conditions.

Australia saw a slight rise in home prices in November, recording the 22nd consecutive month of increases despite declines in major cities like Sydney and Melbourne. Data from CoreLogic indicated a 0.1% growth nationally, a setback from the previous month's 0.3% rise.

The increase was significantly driven by surges in Perth, Adelaide, and Brisbane, which recorded gains of 1.1%, 0.8%, and 0.6%, respectively, while Melbourne and Sydney experienced declines of 0.4% and 0.2%. CoreLogic's research director, Tim Lawless, highlighted a noticeable momentum loss in these cities, attributing it to decreased buyer demand and a rise in vendor activity.

CoreLogic emphasized deteriorating market outlook due to geopolitical risks, persistent inflation, a tight job market, and reduced probability of an early interest rate cut by the Reserve Bank of Australia. A Reuters poll anticipates continued price growth in the next two years, driven by limited supply and a potential, albeit moderate, monetary easing.

(With inputs from agencies.)