Welcome to 2025 and our latest Newcastle real estate market update. As always, my goal is to provide you with the most relevant property insights, with a strong focus on buying and selling in Newcastle and surrounding suburbs.
Across Australia, property values dipped by -0.1% in December after peaking in October and holding steady in November. However, home values increased by 4.9% year-on-year, adding an estimated $38,000 to the median home price.
Among the capital cities:
Melbourne (-3.0%), Hobart (-0.6%), and the ACT (-0.4%) recorded slight declines.
Perth saw a massive 19.1% increase, with Adelaide (+13.1%) and Brisbane (+11.2%) also experiencing strong growth.
If you’ve followed the media, you’ve probably heard that Sydney’s property market experienced an oversupply of listings, leading to lower auction clearance rates and a 1.4% price drop since September 2024.
While Newcastle’s real estate market operates differently, Sydney’s downturn can still influence buyer sentiment. When Sydney property prices dip, investors often hesitate to make big moves in regional areas, including Newcastle.
Despite Sydney’s cooling market, Newcastle’s property market ended 2024 on a high note. According to Pricefinder, the median house price in Newcastle rose to $950,000, reflecting a 7.34% increase over the year.
Unlike Sydney, Newcastle has not yet seen a surge in property listings supply remains similar to last year, which has helped support property values. However, as more homes hit the market in the coming months, this could shift.
Housing affordability remains a pressing issue:
In Q4 of 2024, mortgage repayments consumed 48.7% of the median household income- the highest level since 1996.
The average home loan repayment jumped 10.4% over the year, now sitting at $5,269 per month.
With a federal election approaching, expect to hear plenty of housing policy debates. However, short-term solutions are unlikely given that population growth is outpacing new housing supply.
Meanwhile, all eyes are on interest rates, with many economists predicting one or two rate cuts in 2025. Whether this will boost buyer demand or impact property prices remains to be seen.
Whether you’re looking to sell your home for top dollar or find your next dream property, staying informed about Newcastle’s property trends is crucial. If you need expert advice or assistance with the selling process, feel free to reach out for a market appraisal.
📩 Contact us today to discuss your property goals for 2025!