Is It the Right Time to Buy? Home Price Growth in Summer and Why Prices Could Climb

Property values are running hot as we head into summer. Many expect the heat to build over the next 12 months. Here is how that may shape your home buying plan and what rising home prices in summer could mean for you.

Home values are picking up pace. October saw the fastest monthly growth in more than two years. That momentum has buyers and sellers paying close attention.

The outlook points one way. A recent API Magazine survey found nine in ten respondents, or 88%, expect prices to head higher. That is a strong vote of confidence in the market.

Market watchers are on the same page. PropTrack tips further gains through spring and summer. The Commonwealth Bank also says, “we still expect further gains” this year. Forecasts can miss, but the weight of opinion leans to more growth ahead.

If those calls prove right, it could make sense to bring forward your timeline. Waiting may cost more than acting with a clear plan today.

Home Prices in Summer: Up 6.1% Over the Past Year

It has been a big year. National home prices are up 6.1% across the past 12 months. That lift shows clear home price growth in summer as the market tightens.

Lower interest rates have stoked buyer demand. Cheaper repayments widen the pool of active bidders. That shows up quickly at open homes and auctions.

Tight rental markets are drawing investors back. They now make up close to their highest share of lending since 2017. Yields and vacancy rates are doing the heavy lifting.

Policy is adding demand at the entry level. The expanded 5% deposit first home buyer scheme is helping more buyers get a start. More eligible buyers means more competition for similar stock.

Supply is the handbrake that is not easing. New home completions sit 15.6% below the decade average. Pipes, labour, approvals, and funding all play a part. The upshot is fewer homes hitting the market.

Put it together and demand outruns supply. That is the recipe for further price pressure. It is also a reason some buyers are choosing to act sooner.

Summer Home Prices Can Chip Away at Borrowing Power

No one should rush a home purchase. Good decisions come from clean budgets, solid advice, and proper checks. That said, timing matters when home price growth in summer speeds up.

If values keep rising, the same deposit will buy a little less. Your borrowing capacity may improve with rate cuts, but price gains can outpace that lift. The result is a smaller shortlist and tougher trade offs.

Recent numbers show the squeeze. Rate cuts from the Reserve Bank have given a median income household a $51,000 boost to borrowing power. At the same time, median values across the big capitals have climbed almost $54,000 since February. Prices are moving faster than capacity.

This is not a signal to buy the first listing you see. It is a nudge to use today’s borrowing power well. A plan made now can help you stay in front of the curve.

Speak with us and we will check if you are home loan ready today. If there are gaps, we will map out the steps to get you there.

Take Stock and Get Organised for Home Price Growth in Summer

Start with the numbers. Confirm income, expenses, savings, and buffers. Lock in a budget that leaves room for rates, repairs, and life.

Line up a finance review. Pre approval sets a clear limit and shows sellers you are serious. It also helps you move quickly when the right place appears, which matters if summer home prices keep rising.

Watch local data, not just headlines. Suburb level sales, days on market, and listing volumes tell the real story. A suburb next door can behave very differently.

Plan your shortlist. Focus on homes that fit your budget, needs, and future plans. Be honest about trade offs such as commute, schools, space, and renovation work.

Keep your documents tidy. Up to date payslips, statements, and ID make finance checks faster. When competition is strong, speed is an edge.

A Note on Rates and What Comes Next

Inflation has surprised on the upside. That puts a question mark over future rate cuts. No buyer should bank on cheaper money later, especially with home prices in summer often pushing higher.

If rates do not fall as hoped, borrowing power may stall. If prices rise at the same time, the gap widens. A clear plan now can help you avoid that squeeze.

Talk with a broker who can compare lenders and products. Policy settings differ and can change. A smart lender fit can add capacity without adding risk.

Ready to Start with Osinski Finance? Let’s Set Up Your Plan

Want a straight view of your borrowing capacity, rates, and suitable lenders? 

With summer home prices on the move, Osinski Finance compares a wide panel of lenders and products so you can act with confidence. We help with home loans for purchases and refinances, smart lending options for investing in property, and step by step support for first home buyers including grants and applications.

We work to your brief and handle the paperwork from start to finish so you can move ahead with confidence.

Contact us today. 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.