Are home prices expected to keep rising over the next year?

The past year has been a rollercoaster for property prices in Australia, defying expectations amidst economic challenges. According to CoreLogic, home values have surged by 8.3% nationwide despite the cost of living pressures and high interest rates.

Looking ahead, will this upward trajectory continue, or are we approaching a market cooldown? Domain’s latest forecast offers insights into what lies ahead for Australian property prices over the next 12 months.

Continued Growth on the Horizon

Domain predicts that Australian property prices will continue to rise until mid-2025, driven by several key factors. A limited supply of new homes coupled with a decrease in listings for sale, is contributing to a competitive market landscape. Additionally, robust buyer demand fueled by population growth and migration exerts upward pressure on prices.

Regional Variances

While overall growth is expected, the pace and direction of price movements vary across different cities.

Brisbane

After achieving a remarkable 16.3% increase in the past year, Brisbane is poised for further growth. Domain forecasts a 6-8% rise in median house prices, potentially reaching up to $998,500, while apartment values are also expected to increase by 4-6%.

Sydney

With a projected 6-8% growth rate, Sydney’s median house price could soar to $1.76 million, setting a new record. Apartments are anticipated to see a similar upward trend, reaching up to $855,000.

Melbourne

The Melbourne market is expected to stabilise somewhat, with house prices forecasted to grow between 0-2%, maintaining median prices between $1.03 million and $1.05 million. Units may fare better, with potential growth of up to 4%.

Adelaide

Adelaide is slated for substantial growth with a forecasted 7-8% increase in house prices, potentially reaching up to $984,000. Apartments could also see significant gains, pushing median prices beyond $500,000.

Perth

Following a notable 22% rise in home prices last year, Perth is expected to continue its upward trajectory with a projected 8-10% increase. Median house prices could reach between $840,000 and $856,000, while unit prices are anticipated to rise by 4-5%.

Canberra

Mild growth is anticipated in Canberra, with house prices expected to rise by up to 4%, and unit prices by 1-4%.

Considerations

While Domain’s forecasts provide valuable insights, they are projections subject to various economic factors. Factors such as a tightening job market or stagnant incomes could potentially apply downward pressure on prices.

Ultimately, the decision of when to enter the property market should align with personal readiness rather than market predictions alone. Understanding your borrowing power, eligibility for home loans, and finding the right financial fit are crucial steps in buying Australian property.

Planning Your Next Property Move? Let Osinski Finance Guide You

With Australian property prices expected to rise in the coming year, now is the time to plan your next move wisely. Whether you are a first home buyer or looking to refinance your home loan, Osinski Finance offers expert advice and personalised financial solutions to meet your needs.

Contact us to schedule a consultation and discover how we can help you achieve your property goals.

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 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.