Mortgage loans that fall short of lender’s requirements can make navigating the housing market even more challenging. According to a new report, property prices are expected to continue climbing until mid-2025, though this trend may not be uniform across all regions. Let’s explore where prices are likely to increase and where they might decline—and how The Loan Club could perhaps help you secure the best home loans and mortgage deals.
A Roller-Coaster Year for Property Prices
Despite the ongoing cost of living crisis and elevated interest rates, home values across Australia have surged by 8.3% over the past year, as per CoreLogic data. The big question on every buyer's mind: Will prices keep rising, or is a market cooldown on the horizon?
These questions are crucial for potential buyers weighing whether now is the right time to purchase. If you're considering buying a home, The Loan Club can assist you in navigating the market with confidence.
Whether you need a second mortgage, bridging loans, or small loans online, we have solutions tailored to your needs.
To provide some insights, we turned to Domain’s latest forecast report, which outlines expected property price trends for the next 12 months.
The Big Picture: Prices Expected to Keep Climbing
Several factors are set to push Australian home prices higher over the next year, according to Domain. On one hand, a limited supply of new homes is being built, and fewer homes are listed for sale. On the other hand, strong buyer demand is being driven by increasing migration. Domain suggests that the “push-pull between mortgage affordability and availability” will be a key factor shaping Australia’s property market between now and June 2025.
If you're worried about mortgage affordability, The Loan Club offers competitive rates and suggestions to ensure you get the best loan-to-value ratio. Reach out today to explore your options.
Price Growth Will Vary Between Cities
However, it’s important to note that home prices across Australia won't move in the same direction or at the same pace. Here’s a quick look at what Domain anticipates for home buyers in different cities:
Brisbane: Brisbane's property market has seen a remarkable 16.3% price growth over the past year, with more growth expected. A forecasted 6-8% increase could push Brisbane’s median house price to a record high of up to $998,500 by mid-2025. Apartment values are expected to rise by 4-6%.
Sydney: Domain predicts a 6-8% price growth for Sydney, which could see the city’s median house price reach a new record of up to $1.76 million by this time next year. Apartment prices are also expected to set new records, reaching up to $855,000 with a forecasted 4-6% increase.
Melbourne: Melbourne’s housing market is expected to cool slightly, with a growth forecast of 0-2%, leaving median house prices between $1.03 million and $1.05 million. However, unit prices may perform better, potentially rising by up to 4%. Regional Victoria is the only area where Domain expects house prices to decline, with potential falls of 0-3% by mid-2025.
Adelaide: Adelaide could become a million-dollar city if Domain’s forecast of 7-8% price growth holds true. This growth could push Adelaide’s median house price to a record high of up to $984,000 by June 2025. Unit prices are anticipated to grow by up to 6%, pushing the city’s median apartment price past $500,000.
Perth: Perth has enjoyed a stellar year, with a 22% surge in home prices over the past 12 months. Domain predicts further growth, with a potential 8-10% increase, which could push the median house price to between $840,000 and $856,000 by next year. Unit prices are expected to rise by 4-5%.
Canberra: Modest house price growth is expected in Canberra, with values predicted to rise by up to 4%. Unit prices in the capital are expected to increase by 1-4%.
No matter where you are in Australia, The Loan Club is here to help you find the best mortgage deals and home loans to suit your financial situation. As a trusted lender, we also work with professional mortgage brokers who are ready to assist you in securing a loan that meets your needs.
What to Consider
While Domain’s forecasts are well-informed, they are predictions, not guarantees. Factors such as a tightening jobs market and stagnant incomes could exert downward pressure on property prices.
Ultimately, the best time to buy is when you feel financially ready. While we can’t predict exactly how property prices will move, The Loan Club can help you understand your borrowing power, determine if you qualify for a loan , and guide you to a suitable mortgage deal and bridging loan for your needs. Contact us today to take the first step toward your new home!
Disclaimer: The information provided here is for general knowledge only and does not constitute financial advice. Please consult with a qualified professional before making any financial decisions.
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