April 2025 house price values hit record high

Australian home values hit fresh peak in April. Here’s what it means for owners, buyers and renters.

Australian dwelling prices have chalked up a third straight monthly gain, advancing 0.3 per cent in April to a record $825,349, Cotality’s Home Value Index shows. Darwin led the month ( +1.1 per cent) while Sydney and Melbourne edged 0.2 per cent higher.

Even so, scant stock continues to prop up prices: weekly auctions and new listings are both at six-year lows, mirroring conditions last seen when the 2019 election campaign stalled the market. Lawless expects the next RBA announcement to result in a rate cut on 20 May to keep values drifting modestly higher through 2025.

“In my mind, there’s just no way around this. Prices have to go up. And they will,” says Michael Yardney, from Metropole Property Strategists
Property Update

Yardney argues construction margins remain too thin for developers, meaning fresh supply will lag demand until prices rise another 15–20 per cent. With listings tight and borrowing capacity set to improve, he sees today’s prices as a “window of opportunity” for well-located established homes.

For Upsizers & Investors, rising equity plus lower borrowing costs after May could reignite competition. Experts says established houses are still selling below replacement cost in many suburbs.

For Sellers, Ultra-low stock is lifting clearance rates for quality listings. Serious vendors may find the next eight weeks the sweetest spot of 2025.
For First-home buyers & renters, rental growth is finally cooling: national rents rose 3.8 per cent over the year to March, the slowest since 2021, buying time to save before post-election deposit-guarantee schemes kick in. If you’re looking to get into the property market, speak to a trusted mortgage broker to help you find the best deal.

Regional / Lifestyle markets are still outpacing capitals as hybrid work sticks and vacancies stay tight. Expect regional SA and WA to keep outperforming if another rate cut lands.

With the 3 May federal election and a probable 20 May rate cut looming, expect a brief pause followed by a burst of activity, especially from first-timers armed with new policy incentives. For existing owners, the supply drought and resilient demand suggest prices should keep grinding higher, albeit at a gentler pace than 2024’s early rebound.

The bottom line is that limited supply and interest rate optimism are holding the market aloft despite ongoing uncertainty.