Dwelling values Down Under rose 1% in the three months to September, the lowest increase in the national Home Value Index (HVI) for a rolling three-month period since March 2023, according to CoreLogic.
Looking at monthly figures, a much more modest 0.4% lift was noted in the first month of spring.
This is broadly in line with the monthly change in July and August at 0.3% as momentum continues to leave the market.
The median dwelling value across Australia stood at $807,110 as of 30 September.
Results were varied among the capital cities, with four recording declines in dwelling values through the third quarter.
Melbourne continues to plummet, leading the quarterly drops with a 1.1% dip in home values.
Canberra (down 0.9%), Hobart (down 0.8%), and Darwin (down 0.7%) followed Melbourne on a downward slide over the quarter.
The mid-sized capitals, which have led the pace of capital gains through most of the upswing, are also losing momentum.
Perth values were up 4.7% through Q3, easing from 6.2% in Q2.
Adelaide likewise topped out at a flat 4% in the three months to September
Brisbane's quarterly growth has eased to 2.7%, its lowest rise over a rolling three-month period since April 2023.
Despite the deceleration, these three cities continue to outpace other capitals.
According to CoreLogic, the marked slowdown in the pace of growth was expected as spring selling season rolls in.
"The rise in real estate inventory is a seasonal trend, with spring and early summer one of the busiest periods of the year for selling," CoreLogic research director Tim Lawless said.
However, the figures overshot the usual running rate, according to the property research and analytics firm.
Nationally, the flow of new listings coming onto the market was tracking 3.2% higher than a year ago, bringing the five-year average 8.8% higher than the previous period.
"The flow of freshly advertised housing stock hasn't been this high at this time of the year since 2021," Mr Lawless noted.
More properties on sale, fewer buyers on the market
The expected uptick in selling activity not materialising this spring contributed to the slowdown in the pace of home value growth.
"Alongside the rise in real estate listings, we have also seen vendor metrics soften, signalling weaker selling conditions," Mr Lawless said.
According to CoreLogic, auction clearance rates have wound back to the low 60% range across the combined capital cities, which is about 4 percentage points below the decade average.
Just last week, the preliminary auction clearance rate dipped to 64.5%, the lowest since December 2022 when preliminary results held below 60% most of the month.
A total of 1,828 homes went under the hammer, down 34% from the previous week as the Melbourne auction market paused amid the AFL grand final long weekend.
Vendors becoming more desperate in a buyer's market
As property markets cool across the country, sellers are becoming more desperate, according to a mortgage broker.
"There are a lot of stressed homeowners and property investors who are trying to offload their properties and they are prepared to sell it to the first person that offers them the best deal," said Julian Finch, mortgage broker and founder of Finch Financial.
Mr Finch believes that as sellers rush to sell, buyers may face challenges as well.
"While it is a buyer's market and often this means that you have more power to negotiate as a buyer, there are currently many sellers who are desperate," he said.
"This means, sellers will move quickly to lock in a sale with the buyer who acts the fastest and offers the best terms.
"When purchasing a property in a competitive buyer's market, the best offer may not always win you the property on price alone," Mr Finch said.
Instead he suggested cash buyers, waived cooling off periods and quick settlements could get the purchase over the line rather than the highest offer.
Photo by Thirdman on Pexels
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