Property Market Predictions for 2025: Expert Insights
Australian home prices have been on a slow downswing for the past couple of years, following the nationwide surge in value during the Covid era. The push came from historically low interest rates that fueled the pandemic price boom. As rates started to climb back up, the market settled down. With the cash rate holding steady at 4.35 per cent for over a year now, and no immediate cut in sight, national growth in the housing market is gradually moving forward.
But the playing field isn’t level across all Australian markets. Some areas are poised to go up while others may see a decline in 2025. So, what are the experts predicting?
According to Cameron Kusher, Director of Economic Research at REA Group, current market dynamics indicate a slow and steady rise for 2025. In his December 2024 PropTrack Property Market Outlook Report, Kusher forecasts a potential price increase of up to 4 per cent next year. This projection marks a decrease from the 5.5 per cent growth recorded in the 12 months leading up to November 2024 and the 6.9 per cent growth during the same period in 2023.
