Australia’s Housing Market Rebound: Why Property Prices Are Climbing
The Market Defies Higher Interest Rates
Australia’s property market is bouncing back, proving resilient despite rising interest rates and cost-of-living pressures.
Since March 2023, home values have surged 4.9% nationally, offsetting almost half of the losses recorded in the downturn between April 2022 and February 2023, when values declined 9.1%.
📈 Australia’s total housing market value has now hit $10 trillion again—the first time since June 2022.
What’s Driving Property Prices Higher?
1. Net Overseas Migration
Australia’s population growth is booming, with more people arriving than leaving. This rapid increase in demand is fuelling competition for housing, keeping property prices strong.
2. Use of Savings, Profits & Home Equity
Instead of borrowing more, homeowners looking to upgrade are using their savings, home equity, or profits from previous properties to fund their purchases. This keeps buying activity high, even as interest rates rise.
3. Tight Housing Supply
Property listings remain well below previous years, leading to intense competition between buyers. With fewer homes available, prices continue to climb, driven by demand that outpaces supply.
Will Property Prices Keep Rising?
Market Forecast
Home values have shown steady growth for the past six months. However, future price trends depend on interest rates and overall economic conditions.
According to CoreLogic, some market cooling is expected toward the end of 2023, which could ease affordability concerns as long as it’s not driven by further rate hikes or a slowing economy.
How Buyers Can Get Ahead
Secure a Competitive Edge
With home values rising, buyers need to be prepared before entering the market.
Research by Helia shows that 67% of Australians turn to mortgage brokers for expert guidance when purchasing a home.
🏡 Home buyers are seeking support in key areas:
✅ Understanding their borrowing power – 63% of survey respondents
✅ Choosing the right home loan – 60%
✅ Getting loan pre-approval – 56%
✅ Navigating loan applications – 55%
Ready to Buy? Let’s Make It Happen!
📌 Want to beat rising prices? Our expert mortgage brokers at CBM Mortgages can help you:
✅ Secure home loan pre-approval
✅ Understand your borrowing power
✅ Choose the best mortgage option
Read our blog post on different types of home loans here or go to our blog on different parties involved in property transactions here
📞 Contact us today to start your journey toward homeownership!
Disclaimer
This article provides general information only and does not constitute financial advice. Always consult a qualified financial advisor or mortgage broker to assess your personal situation before making any financial decisions.
Written by Craig McDonald 14/06/2025
