Starting in 2025, many Australian real estate experts forecast a strong surge in the housing market, with approximately 65 per cent predicting that house prices will experience notable growth. Following CoreLogic's annual report, Decoding 2025, the expected increase is driven by improving affordability, rising incomes, and potential interest rate cuts.
The survey, which included around 2,400 real estate, banking, and finance professionals, sheds light on the industry's challenges, including housing market trends, first-home buyer difficulties, and business priorities.
The report further revealed that two-thirds of them expect the price rise, with 25 per cent predicting gains exceeding 5 per cent. In particular, Queensland stands out as a strong marketplace, driven by significant internal migration, with 70 per cent of respondents expecting price growth in the state next year. Despite a dip in Melbourne's median home value, experts expect a recovery, citing improved affordability and increased demand.
CoreLogic's Head of Research, Eliza Owen, said, "Economic recovery in late 2024 has laid the groundwork for increased buyer activity in the year ahead." Additionally, she noted that easing interest rates and improving household savings will fuel demand in late 2025, though the pace of price increase is expected to be softer than in 2024.
The document further highlights challenges for first-home buyers, with 87 per cent of agents noting longer savings periods. Additionally, 77 per cent observed an increase in financial aid from parents. However, buyers adapt by seeking smaller, more affordable homes or adopting 'rentvesting' – renting in desirable areas while investing elsewhere.
With the federal election approaching, 63 per cent of respondents believe housing supply should be the top policy priority. "Strategic housing policies targeting faster approvals, increased land release, and incentives for diverse housing types will be critical to addressing supply constraints," said Owen.
Looking to the future, agents prioritise developing contacts (84 per cent), converting website visitors into listings (83 per cent), and strengthening team culture (80 per cent). Leveraging customer data and enhancing a stronger digital presence will also be crucial in navigating the ever-evolving real estate market in 2025.
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