Ray White Group Chief Economist, Nerida Conisbee said the market has taken a pause following strong performance in previous months, particularly the 1.1 per cent rise in October that pushed annual house price growth into double-digit territory.
“The flat national result reflects a slowdown in the larger east-coast capitals,” Ms Conisbee said.
“Sydney and Canberra both recorded zero monthly growth in November, while Melbourne also paused after several months of improvement.”
Despite the slowdown in major eastern capitals, Ms Conisbee highlighted that growth continues in other markets that have led throughout this cycle.
“Perth, Adelaide and Darwin all recorded monthly gains of between 1.1 and 1.5 per cent in November for houses, and remain the key contributors to national growth,” she said.
“These cities continue to face significant supply shortages and ongoing demand pressures.”
Ms Conisbee pointed to regional Australia as another key driver of momentum in the housing market.
“House prices outside the capitals rose 1.4 per cent over the month, compared with 0.9 per cent across the capitals,” she said.
“Regional Western Australia, regional South Australia and parts of regional Queensland continue to post solid results underpinned by extremely low stock levels.”
She said that smaller capitals and regional areas are expected to remain the key outperformers into early 2026, continuing a trend observed in recent months.
The number of properties for sale shifted significantly in November, with new listings falling 20.4 per cent month-on-month across the major capitals.
“Despite this decline, newly advertised stock remains 0.9 per cent higher than a year ago, indicating that supply is still tight but broadly unchanged from late 2024,” Ms Conisbee said.
“With fewer sellers coming to market, buyers are heading into summer with reduced choice.”
At the same time, Ms Conisbee observed early signs of easing demand across the country.
“Average active bidders per auction declined across most major cities in November, with the sharpest fall in Perth,” she said.
“Brisbane, Adelaide and the Gold Coast also saw reduced bidding depth. Clearance rates remain steady, but fewer competing bidders point to more measured buyer behaviour as higher borrowing costs continue to constrain purchasing power.”
The softening in auction competition aligns with a shift in interest rate expectations, according to Ms Conisbee.
“Stronger-than-expected inflation has pushed back the anticipated timing of rate cuts, increasing the likelihood that borrowing costs will remain elevated for longer,” she said.
“While this could further temper demand, the simultaneous drop in new listings is likely to offset some of that moderation by limiting available supply.”
