The November uptick means house prices have grown 22.2 per cent this year, according to CoreLogic.
This means the average home in Australia is $126,700 more expensive than last year.
Tim Lawless, CoreLogic’s research director, 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,” Lawless said.
Sydney and Melbourne pull back
Trends in capital cities are starting to change. Brisbane and Adelaide are now recording the fastest pace of growth, while conditions across Sydney and Melbourne have slowed more sharply.
Brisbane and Adelaide are 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.
Brisbane home values were up 2.9 per cent in November (the highest since October, 2003) while Adelaide values were up 2.5 per cent (the highest since February, 1993).
That means homes in Brisbane gained around $18,500 in value over the month of November and homes in Adelaide gained $13,500.
“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.”
House prices swell
CoreLogic research showed houses in capital cities were now a whopping 37.9 per cent more expensive than apartments.
This means that a house in a capital city costs about $240,500 more than a unit in the same city.
In Sydney, where the gap between house and unit values is the widest, a house costs $523,000 more, on average, than a unit.
“With such a large value gap between the broad housing types, it’s no wonder we are seeing demand gradually transition towards higher-density housing options, simply because they are substantially more affordable than buying a house,” Lawless said.