2024: the year that was in Canberra property

Real estate in Canberra and the Yass Valley is ripe for the picking in 2025, with market activity ramping up and more buying opportunities beckoning after a flat year.

Windrose Property Principal Sam McGregor said strength in the Canberra market and rural towns on the ACT/NSW border was steadily returning despite 2024 being a bumpy ride with mild fluctuations in property values and cautious buyers.

The year that’s been

While 2024 was a slower than previous years, price sensitivity was the most significant factor affecting the local market. Vendors who respected market conditions and kept realistic prices expectations were able to secure sales.

“In 2024, the market was quite strong and there was good demand, it was just price-sensitive,” Sam said.

“There was a definite crunch at the start of winter when a lot of people realised it would be a few months before there would be more stock available on the market, so we started seeing more transactions.

“The first month of spring was really busy with a huge stock influx. Lots of properties came to the market and the numbers showed there wasn’t really price pressure up or down, even though stock was up by about 30% from the year before.”

Then, December saw a reinvigorated market with more buyers placing offers, wanting to close the year out with a new home.

The latest CoreLogic Hedonic Home Value Index shows annual property prices in Canberra were flat with a negligible slip of 0.1% in values.

The median dwelling price in Canberra is now $851,731 – the third highest of all capital cities, behind Brisbane at $886,540 and Sydney at $1.196 million.

Where to now?

Real estate in Canberra and border locales in NSW is on the up, with stronger buyer sentiment and more stable market conditions boosting sale prospects.

“In the conversations I have been having on the street with buyers and in living rooms with vendors, there is basically a feeling that it’s not going to get any worse from here,” Sam said.

“We’re not expecting dramatic changes in interest rate rises, which means it’s a good time to buy and it’s a good time to sell. It’s like the neutral sentiment we’ve seen this year.

“The fact of the matter is with a 30% stock increase in spring, prices didn’t go down. That means a lot of people saw a lot of value at the current price point.”

If it translates, the mooted pulling back of interest rates will provide a welcome boost to the housing market.

“Most of the major banks are forecasting a full percent by the end of next year – that is going to put money into the housing market. So, what I’m expecting to see at the start of the year is a bit of excitement, especially at entry level property. The more serious talk we get about the RBA reducing interest rates, the more pressure there will be on prices,” Sam said.

“It starts with the entry level stock up to $800,000, and that does definitely flow on to the other tiers in the market.

“It’s a really interesting time for the market generally. There really hasn’t been a better time to buy a house at least in the last two years. So, whatever you buy at the start of 2025, you will look back and say that was a great buy.”

Sam said January 26 (Australia Day) was generally a choke point for real estate.

“In Canberra and surrounds, which is obviously heavily public service driven for employment and housing, everyone wants to make sure they’ve locked something in and moved in time for the new school year.”

Yass Valley

Residential homes in the Yass Valley and the allure of rural living are presenting real opportunities in the current market that will continue well into the new year.

“The residential stock in the Yass Valley has taken a really tough hit in the last quarter and I’ve seen prices come back by about 10%, which is quite significant,” Sam said.

“Over the next 12 months people will realise there’s amazing value for residential housing in the Yass Valley.

“Right now in North Yass, 45 minutes from the CBD, you could get a 5×3 for around $850,000. $850,000 probably doesn’t even buy you a 4×2 in Gungahlin so there really is good value in residential areas in the Yass Valley and in the next year people will notice that more.

“Premium lifestyle properties have bucked the trend consistently and there’s still price pressure upwards. It’s an interesting market because there are a lot of people who dream about living in the Yass Valley or on a small acreage, which means it’s very aspirational as a market. It will continue to be aspirational and there will be marginal price pressure.

“As the market continues to recover, people will realise how much value there is out here. It’s going to be an exciting year for the Yass Valley,” he said.