Australia’s bricks and mortar market is firmly back in growth mode, with national dwelling values rising for the fifth consecutive month.

Driven by falling interest rates and a tightening of available listings, dwelling values lifted 1.4% nationally to a new high of $837,586 in the June quarter, according to the latest data from Cotality.

On a monthly basis, housing values increased by 0.6% nationally. Canberra led the charge with a 0.9% lift in June, pushing its median dwelling price to $855,197. Perth values gained by 0.8% gain, taking its median dwelling price to $819,885. Sydney hit a new high of $1,210,222 after monthly growth of 0.6% in June.

With confidence returning, demand robust, and supply remaining tight, Australia’s real estate market is firmly on the front foot, observed Angus Raine, Executive Chairman, Raine & Horne.

From a supply perspective, Raine & Horne reports that listings currently sit just below the levels of the same time last year, while appraisals are down significantly by almost 15% compared to June 2024. “This low-supply environment presents a golden opportunity for savvy vendors and investors considering a winter sale, with buyer demand holding relatively firm despite seasonal headwinds,” said Angus.

That said, while buyer numbers have dipped compared to early winter 2024, they remain around 5% higher than at the beginning of this year, according to the latest Raine & Horne data.

“While headwinds such as cost-of-living pressures, global economic uncertainty, and affordability challenges in certain markets remain, the tailwinds of lower interest rates, improving consumer confidence, a tight labour market, and constrained housing supply are expected to outweigh them,” Angus said.

“These factors, starting with another interest rate cut from the Reserve Bank on Tuesday, 8 July, should lay further groundwork for continued, decent annual growth of up to 5%+ in housing values for the 12 months of 2025.”

Shane Oliver, Chief Economist & Head of Investment Strategy, AMP agrees, “More RBA rate cuts along with the ongoing housing shortage and the anticipation of more support for first home buyers are expected to drive further gains in average prices this year.

“We expect home prices to rise around 5 or 6% this year.”

Shane added, “The Government’s Help to Buy Scheme with 10,000 places a year which will see the Government take a 40% equity stake is starting up and anticipation of next year’s startup of its election promise to expand the low deposit guarantee allowing most FHBs to get in with a 5% deposit will likely provide some boost to housing demand from first home buyers looking to get in early.”

Change in dwelling values capital cities – June 2025

(Source: CoreLogic Hedonic Home Value Index 1 July 2025)

If you’re considering listing a property this winter, contact your local Raine & Horne agent today.