LOCAL house prices continue to hold firm, with Mildura and the wider North West of Victoria continuing to buck a trend that has seen a drop in value across much of the state.
According to the latest PropTrack Home Price Index released on Thursday, house and unit prices in North West Victoria continued an upward trend, while both Melbourne and the rest of Victoria, collectively, showed falls in annual growth.
North West Victoria’s annual house prices grew 1.45 per cent, including a quarterly growth of 1.62 between October and December of 2024, while units saw an increase over the same period of 0.37 per cent and were up year-on-year by 1.64 per cent.
The median house price for North West Victoria now sits as $403,000, with unit values at $311,000.
The region’s annual increase compares to a house prices growth in Melbourne of -2.65 per cent and -2.16 for the rest of Victoria
Melbourne has had the smallest cumulative growth since the pandemic for all dwellings of 13.9 per cent, while the rest of Victoria has seen a 38.6 per cent jump in property values.
REA Group senior economist Anne Flaherty said that while December was the first month in which national home values had declined in two years, price growth momentum across both capital city and regional areas had been slowing since March 2024.
“Contributing to the slowdown, and reversal, of price growth, the number of properties for sale has been relatively high over the second half of 2024, particularly compared to the same period in 2023,” she said.
“This has given buyers more choice and we’re seeing them take more time when purchasing.
“While the impact of (Federal Government’s) stage three tax cuts, which took effect in July, bolstered borrowing capacities for some buyers, this has been counteracted by softer economic conditions.
“In particular, interest rate cuts that were originally anticipated prior to 2025 have now been pushed back.”
National home prices fell by 0.17 per cent over December yet remain 4.73 per cent higher compared to 12 months ago.
Capital city areas led the decline, falling by 0.25 per cent over December, while regional areas displayed more resilience, rising by 0.03 per cent.
