Will House Prices Rise in 2025? Here’s What Experts Think

If you’ve been wondering where Australia’s property market is headed in 2025, you’re not alone. According to CoreLogic’s annual Decoding 2025 report, a whopping 65% of real estate professionals predict house prices will rise next year—driven by improving affordability, rising incomes, and the potential for interest rate cuts.

So, what does this mean for buyers, sellers, and investors? Let’s break it down.

What’s Driving the Predicted Price Growth?

The report surveyed over 2,400 real estate agents and finance professionals, uncovering key insights into the housing market’s future.

🔹 Two-thirds of respondents expect prices to rise in 2025.
🔹 25% predict growth of more than 5%, with Queensland leading the charge.
🔹 Melbourne may stage a recovery, as affordability improves and demand picks up.

CoreLogic’s Head of Research, Eliza Owen, noted that while the market may soften in early 2025, conditions could improve later in the year. Lower interest rates, rising household incomes, and better affordability in key markets could set the stage for moderate but steady price increases.

“While we do expect values to finish 2025 higher, the pace of increase will likely be softer than the 4.9% achieved in 2024,” Owen said.

Which Markets Are Set to Benefit the Most?

📍 Queensland is leading the charge – 70% of respondents expect house prices to rise in the Sunshine State, driven by strong internal migration and sustained demand.

📍 Melbourne’s property market – While Melbourne’s median dwelling value sits at $774,000, still 6.4% below its 2022 peak, many believe the city could see a rebound as affordability improves.

📍 Sydney’s high-end suburbs – If rate cuts materialise, history suggests that premium markets in Sydney and Melbourne will be the first to benefit.

First-Home Buyers: Facing More Challenges Than Ever

It’s no secret that buying your first home has become harder. The report highlights key struggles for first-home buyers in 2025:

🚨 87% of agents report buyers needing longer savings periods.
🚨 77% say buyers are leaning more on the ‘Bank of Mum and Dad’ for financial support.
🚨 Many first-home buyers are turning to ‘rentvesting’—renting in one area while investing elsewhere.

Will the Federal Election Impact Housing?

With a Federal election on the horizon, housing supply is set to be a major policy focus. 63% of survey respondents say affordability challenges should be the government’s top priority in 2025.

Eliza Owen suggests that faster approvals, increased land release, and incentives for diverse housing types will be key to addressing supply constraints.

What’s Next for Real Estate Professionals?

The report also explored what real estate businesses are prioritising in 2025:

✅ 84% are focused on nurturing contacts and building relationships.
✅ 83% want to convert website traffic into listings.
✅ 80% are strengthening their team’s prospecting culture.
✅ Many are investing in digital marketing and AI tools to gain a competitive edge.

CoreLogic’s Josh Symons emphasised that leveraging client data, AI, and digital strategies will be crucial for agents looking to thrive in 2025.

What Does This Mean for You?

If you’re thinking about buying, selling, or investing in property, 2025 could bring new opportunities—especially if interest rates start to ease.

📌 For buyers – A market rebound could mean higher prices later in the year, so getting pre-approved early could give you an edge.
📌 For sellers – If your market is set to benefit from growth, 2025 could be a great time to list.
📌 For investors – Look at high-growth areas like Brisbane and premium markets in Sydney & Melbourne.

Thinking about making a move? Let’s chat! I can help you understand your options and get you ready to take advantage of the market shifts ahead.