Housing Market 2024 Summary and Predictions for 2025.

Sydney's median house prices have seen fluctuations over the previous years due to varying supply and demand dynamics and according to Domain’s House Report, Sydney’s median house price has now exceeded AUD 1.6 million and will likely be positioned closer to the AUD 2.0 million in the coming years if certain conditions are met.

The volume of property sales in Sydney has shown a downward trend due to higher interest rates and economic uncertainties but rental property prices have increased, driven by the same supply and demand issues.

According to SQM Research, the median rental price in Sydney for all houses is now around AUD 833 per week.

Nationally, house prices have experienced a cooling off, particularly in Melbourne, where the median house price across Australia is approximately AUD 750,000.

Meanwhile, some regional areas have seen growth due to increased remote working trends and lifestyle changes.

2025 Predictions.

With potential interest rate reductions on the horizon, we could see a resurgence in refinancing activities along with increased housing demand. This may again increase house prices and boost mortgage applications, particularly from first-home buyers.

A recent KPMG report predicts that national house prices will increase by 5.3% over the next six months and by 5.6% in 2025. Meanwhile, apartment prices are expected to rise by an average of 4.5% by December and then align with house prices, growing by 5.6% over the next year.

Getting started.

If you’re planning on entering the housing market, you should consider your financial position and exposure to debt which could affect your borrowing power. To learn more about what this means for you, make an appointment for an obligation free discussion and assessment of your current borrowing capacity.