Home prices adjusted to inflation expose huge baby boomer wealth

Hopeful Sydney homebuyers are paying substantially more money for properties relative to the cost of everything else than any recent generation before them, alarming new analysis has revealed – rubbishing claims baby boomers had it harder because of higher interest rates.

The exclusive PropTrack study showed current prices were four times higher than in 1980 once adjusted for inflation, with a typical house back then costing $65,000, the same as $338,000 in today’s money.

It’s a far sight from the $1.47 million Sydney houses are typically selling for in 2025.

The research measured housing costs across each decade, showing property prices over the 1990s, 2000s and 2010s were also markedly cheaper than today when compared to other living costs at the time.

Sydney’s $187,000 median house price in 1990 was equivalent to $447,300 in today’s money, while the $285,000 median in 2000 was worth $544,000 in 2025 dollars.

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This Castle Cove home sold in 1987 for $415,000, equivalent of $1.2m in today’s spending power. It sold again this year for $4.6m.

Even buyers who snapped up homes in 2010 paid significantly less than today in real terms. The average house back then cost $600,000, which would translate to about $874,300 once adjusted for inflation.

SEE WHAT HOMES REALLY USED TO COST IN YOUR SUBURB

REA Group economist Eleanor Creagh said the incredible differences in the real cost of housing over the decades showed current first-home buyers faced challenges like no generation before them.

“To boil down the challenges for first-home buyers to overspending on travel or smashed avocado is narrow and simplistic,” she said.

“Every generation has its own unique struggles but on the whole today’s buyers are navigating a fundamentally different landscape with structural housing barriers baby boomers did not have.

“The deposit and stamp duty burden is much higher, affordability is more stretched and prices have vastly outpaced wage growth.”

Home prices in each decade and what they cost in today’s dollars. NSW real estate.

Ms Creagh said home prices in 2025 were significantly more expensive than the real costs of housing in the 1980s, 1990s and 2000s because of sweeping cultural, social and economic changes.

These included the rise of dual income families as the predominant class of buyers and an interrupted run of economic growth between 1991 and 2020 that saw Australia stave off a recession.

Markedly lower interest rates than in the 1980s and 1990s, and the resulting boost in spending power this gave buyers, was another factor that drove up prices, Ms Creagh said. Building costs have also risen.

“There are a lot of factors,” she said. “The Australian population has grown by about 10 million since the 1980s and most of that growth has been concentrated in city markets where the supply of new housing has been constrained.

“There’s also been a cultural shift. Property is a much more popular vehicle for wealth creation and when you combine that with economic deregulation and tax incentives, it’s helped push prices up.”

Home prices adjusted for inflation across each decade. NSW real estate.

PropTrack economist Angus Moore said the lower prices paid by previous generations, even once adjusted for inflation, indicated younger people had a harder entry into the housing market.

“The deposit hurdle is just unequivocally harder than it was four or five decades ago, and that has manifested in home ownership rates which have fallen over those years,” Mr Moore said.

Young people were taking longer to enter the market, relying more on family support to stump up a deposit, or making use of government incentives to buy with a smaller deposit, Mr Moore said.

McGrath Hunters Hill agent Antonios Kanis said decades of price gains, while being an incredible wealth creator for owners, have come with a downside.

“Some homeowners want to move but can’t because if they sold they wouldn’t be able to get back into their own area. There’s always a shortage of stock and that keeps prices high,” Mr Kanis said.

Wareemba family

Malcolm and Georgia Clark, with kids Sloane, 9, Elle, 6, are selling their Wareemba house. Picture: Justin Lloyd.

Among the homeowners in this position are Wareemba residents Georgia and Malcolm Clark: they wanted to upsize from their current duplex to a house in the area but prices have exploded in the eight years since they bought.

“We love it here, it’s got such a great community, but we’ve become priced out,” Ms Clark said, adding that they were now selling up their home at 345 Great North Rd and planning to relocate to a cheaper area.

“Those recent rate cuts will help with borrowing power but we also think it might heat up prices. We just hope that because we are buying and selling in the same market it will balance out.”

The post Home prices adjusted to inflation expose huge baby boomer wealth appeared first on realestate.com.au.

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How Melbourne’s 1980s property boom created a wealth gap that locked out young buyers forever | PropTrack

Boomers bought big with little, now younger generations face massive debt just to get in. New data reveals how Melbourne’s housing market has transformed across decades.

The Baby Boomers really did have it better when it comes to housing.

Shock new figures show that inflation and wage growth has accounted for only a tiny fraction of Melbourne’s property price rises since the 1980s.

Instead, decades of undersupply of new homes and generations of Victorians bidding up prices have driven prices to levels that will permanently keep today’s first-home buyers out of some suburbs.

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Today’s $900,000 median house price would more than cover the cost of a 1980s Toorak house, $160,500 at the time or about $824,000 in today’s money.

The suburb’s typical residence is now worth $4.8m, almost six times higher, and far in front of inflation.

Suburbs like Malvern, Brighton, Kew and Albert Park have also recorded inflation-adjusted increases of between $2m and $3m.

In 1980, $900,000 could buy five homes in Toorak. Today, it barely covers one, a stark sign of Melbourne’s widening property wealth gap.

11 Robertson St, Toorak Sold in 1985 for $450,000 Sold in 2025 for $14.9m

Even in more affordable pockets, younger generations are now struggling to enter the same markets their parents once bought into with modest incomes and low deposits.

PropTrack senior economist Eleanor Creagh said the data “lays bare” the widening generational wealth divide, and shows just how much opportunity has been locked behind property prices.

“Homeowners who bought in the ’80s or ’90s are now sitting on huge capital gains,” Ms Creagh said.

PropTrack’s Eleanor Creagh says today’s buyers face stretched affordability, rising debt burdens and a very different property landscape.

Saving for a house deposit once took three years. Now it can take more than a decade, despite rising incomes.

“Today’s first-home buyers face a completely different market, higher deposits, higher debt burdens, and affordability stretched close to record lows.”

According to the Australian Bureau of Statistics, the average weekly earnings for full-time adults in March 1980 were just $245.70, or around $12,800 a year.

Adjusted for inflation, that’s roughly equivalent to $54,600 in today’s dollars.

28 Elizabeth St, Malvern, Sold in 1993 for $522,000, Sold in September 2024: $4.3m

22 Campbell St, Brighton, Sold for $54,000 in 1977, Sold for $5m in 2025 – for Herald Sun Real Estate

In contrast, the latest ABS figures show average full-time earnings are now $1,975.80 a week, or just over $102,000 annually.

While that represents a fourfold increase, house prices in some Melbourne suburbs have surged more than 30-fold over the same period.

Even in outer suburbs like Ferntree Gully, once a launch pad for working-class homeownership, prices have soared.

A house that cost $46,000 in 1980 — about $236,000 today — now has a median of over $870,000.

And while Baby Boomers frequently cite double-digit interest rates in the 1980s — which reached as high as 17 per cent by 1989 — Ms Creagh said they were borrowing far smaller sums relative to income.

76 Mount St, Kew, Sold for $39,000 in Feb 1979, Sold for $3.4m in April 2025

“It’s a very different landscape,” she said.

“Back then, prices were much lower relative to wages.

“Today, you’re borrowing more, for longer, just to get in.”

M R Advocacy director Madeleine Roberts said younger Australians are getting strategic, using rentvesting and growth corridors to build equity.

M R Advocacy director and buyers’ agent Madeleine Roberts said modern buyers were being forced to think strategically, even creatively, just to get a foot on the ladder.

“It’s not about buying your forever home anymore,” Ms Roberts said.

“It’s about building equity, through rentvesting, buying in growth corridors, or even interstate”

In 1989, mortgage rates hit 17 per cent, but buyers borrowed far less. Today’s lower rates mask record-breaking debt levels.

“Everyone wants the dream home, but the reality is you’ve got to start somewhere. And that somewhere often looks very different now.”

Ms Roberts said while many young buyers still dreamt of owning property, their journey was shaped more by investment strategy than lifestyle goals.

“In the ’80s you could live out of home, get married young and buy a place not long after,” she said.

“These days you might be living at home into your late 20s just to save.”

Kay & Burton managing director Ross Savas said Toorak and Malvern still attract intergenerational wealth, tech money and global buyers. Photo: Josh Robenstone

Kay & Burton managing director Ross Savas said prestige suburbs like Toorak, Malvern and Armadale continue to attract intergenerational wealth, and will likely become even harder to access in decades to come.

“There’s a new wave of wealth entering the market — tech entrepreneurs, global buyers, young professionals,” Mr Savas said.

“But it’s underpinned by long-held family wealth.

“People still talk about the homes they missed out on 20 years ago. I’ve no doubt they’ll be saying the same thing in another 20.”

17 Yarravale Rd, Kew, Sold for $280,000 in 1987, Sold for $3.05m in March 2025

Mr Savas said the enduring appeal of Stonnington postcodes came down to lifestyle, elite schools, vibrant retail, and proximity to the CBD, but also scarcity.

“This is still one of the last asset classes in Australia that benefits from tax-free capital growth,” he said.
“That makes it a wealth-building opportunity as well as a lifestyle choice.”

While today’s buyers are unlikely to see the same meteoric gains their parents did, PropTrack senior economist Eleanor Creagh said Melbourne housing still held long-term potential, especially as population pressures and supply constraints continue.

“You may not get Toorak, but you can still build wealth,” Ms Creagh said.

“Start where you can, let compound growth work for you.

“The earlier you start, the more options you’ll have.”

Top Melbourne suburbs where house prices soared since 1980

Suburb 1980’s Average Price 1980 Price (Indexed to 2025) 2025 Projected Price Difference (2025 – 1980)
Toorak $160,500 $824,200 $4.80m $4.64m
Deepdene $66,450 $341,200 $3.81m $3.75m
Canterbury $70,500 $362,000 $3.48m $3.40m
Malvern $65,000 $333,800 $3.19m $3.12m
Hawthorn $66,085 $339,300 $3.07m $3.00m
Brighton $79,750 $409,500 $3.03m $2.95m
Balwyn $49,500 $254,200 $2.90m $2.85m
Middle Park $61,000 $313,200 $2.67m $2.61m
Kew $60,500 $310,700 $2.66m $2.60m
Camberwell $62,000 $318,400 $2.58m $2.52m
Hawthorn East $60,000 $308,100 $2.50m $2.44m
Armadale $68,500 $351,800 $2.44m $2.38m
Mont Albert $53,000 $272,200 $2.42m $2.37m
Eaglemont $59,250 $304,300 $2.41m $2.35m
Ivanhoe East $67,500 $346,600 $2.38m $2.31m
Black Rock $60,250 $309,400 $2.35m $2.29m
Albert Park $47,750 $245,200 $2.32m $2.27m
Hampton $47,000 $241,300 $2.32m $2.27m
Surrey Hills $49,000 $251,600 $2.31m $2.26m
Balwyn North $66,000 $338,900 $2.31m $2.24m
Glen Iris $53,325 $273,800 $2.26m $2.20m
Caulfield North $69,000 $354,300 $2.23m $2.16m
Caulfield $57,723 $296,400 $2.20m $2.14m
Park Orchards $74,350 $381,800 $2.20m $2.13m
Kew East $57,750 $296,500 $2.17m $2.11m
Elwood $50,000 $256,800 $2.14m $2.09m
Sandringham $51,500 $264,500 $2.06m $2.01m
Brighton East $58,000 $297,800 $2.04m $1.98m
Malvern East $50,000 $256,800 $2.00m $1.95m
Beaumaris $61,000 $313,200 $2.00m $1.94m
Elsternwick $52,000 $267,000 $1.95m $1.90m
South Yarra $70,000 $359,500 $1.94m $1.86m
Ashburton $40,500 $208,000 $1.87m $1.83m
Ormond $41,375 $212,500 $1.86m $1.82m
Alphington $35,500 $182,300 $1.84m $1.80m
Aberfeldie $42,000 $215,700 $1.81m $1.77m
McKinnon $41,500 $213,100 $1.80m $1.76m
Sorrento $35,000 $179,700 $1.79m $1.75m
Ivanhoe $46,500 $238,800 $1.76m $1.72m
Fitzroy $48,250 $247,800 $1.72m $1.67m
Caulfield South $46,000 $236,200 $1.72m $1.67m
Essendon $42,500 $218,200 $1.71m $1.67m
Templestowe $68,000 $349,200 $1.72m $1.65m
Carnegie $38,000 $195,100 $1.68m $1.64m
Mont Albert North $48,500 $249,000 $1.65m $1.61m
Box Hill $36,000 $184,900 $1.65m $1.61m
Glen Waverley $51,500 $264,500 $1.66m $1.61m
St Kilda East $61,500 $315,800 $1.66m $1.60m
Princes Hill $57,250 $294,000 $1.65m $1.59m
Carlton North $49,500 $254,200 $1.64m $1.59m
Fairfield $31,500 $161,800 $1.60m $1.57m
Mount Waverley $48,000 $246,500 $1.62m $1.57m
Murrumbeena $40,000 $205,400 $1.61m $1.57m
Northcote $29,250 $150,200 $1.60m $1.57m
Strathmore $46,500 $238,800 $1.61m $1.57m
Bentleigh $42,000 $215,700 $1.61m $1.57m
Donvale $52,975 $272,000 $1.61m $1.56m
Mount Eliza $65,000 $333,800 $1.61m $1.55m
Doncaster East $51,000 $261,900 $1.58m $1.53m
Clifton Hill $39,000 $200,300 $1.56m $1.52m
Port Melbourne $36,000 $184,900 $1.55m $1.52m
Lower Plenty $57,000 $292,700 $1.58m $1.52m
St Kilda $42,000 $215,700 $1.54m $1.50m
Williamstown $36,000 $184,900 $1.52m $1.49m
South Melbourne $44,000 $225,900 $1.53m $1.49m
Prahran $43,500 $223,400 $1.53m $1.49m
Fitzroy North $40,875 $209,900 $1.51m $1.47m
Blackburn $42,500 $218,200 $1.51m $1.47m
Moonee Ponds $36,000 $184,900 $1.48m $1.44m
Bentleigh East $41,500 $213,100 $1.48m $1.44m
Ashwood $38,250 $196,400 $1.47m $1.43m
Parkdale $37,975 $195,000 $1.46m $1.42m
North Warrandyte $55,000 $282,400 $1.45m $1.40m
Vermont South $60,000 $308,100 $1.46m $1.40m
Mount Martha $44,800 $230,000 $1.44m $1.40m
Hughesdale $30,650 $157,400 $1.43m $1.40m
Doncaster $59,000 $303,000 $1.45m $1.39m
Highett $38,000 $195,100 $1.43m $1.39m
Hampton East $38,500 $197,700 $1.42m $1.38m
Box Hill South $40,000 $205,400 $1.42m $1.38m
Thornbury $30,000 $154,100 $1.39m $1.36m
Windsor $42,750 $219,500 $1.40m $1.36m
Warrandyte $50,125 $257,400 $1.40m $1.35m
Richmond $34,000 $174,600 $1.38m $1.35m
Balaclava $39,000 $200,300 $1.38m $1.34m
Wheelers Hill $55,000 $282,400 $1.40m $1.34m
Heidelberg $48,000 $246,500 $1.37m $1.33m
Somers $44,000 $225,900 $1.36m $1.32m
Blairgowrie $29,035 $149,100 $1.35m $1.32m
Brunswick East $29,000 $148,900 $1.35m $1.32m
Carlton $50,000 $256,800 $1.37m $1.32m
Burwood $40,500 $208,000 $1.36m $1.32m
Rosanna $47,000 $241,300 $1.36m $1.31m
Blackburn South $40,500 $208,000 $1.33m $1.29m
Templestowe Lower $60,000 $308,100 $1.34m $1.28m
Box Hill North $39,000 $200,300 $1.32m $1.28m
Oakleigh $32,000 $164,300 $1.31m $1.27m
Mentone $49,000 $251,600 $1.31m $1.26m
Aspendale $35,500 $182,300 $1.29m $1.26m
Mordialloc $35,000 $179,700 $1.30m $1.26m
Edithvale $33,000 $169,500 $1.29m $1.26m
Blackburn North $40,000 $205,400 $1.29m $1.25m
Brunswick West $33,000 $169,500 $1.28m $1.25m
Bulleen $49,000 $251,600 $1.30m $1.25m
Ascot Vale $34,250 $175,900 $1.28m $1.25m
North Melbourne $41,750 $214,400 $1.28m $1.24m
Burwood East $45,500 $233,600 $1.29m $1.24m
Brunswick $28,000 $143,800 $1.26m $1.23m
Cremorne $30,000 $154,100 $1.26m $1.23m
Vermont $44,500 $228,500 $1.28m $1.23m
Eltham North $52,050 $267,300 $1.27m $1.22m
McCrae $33,000 $169,500 $1.25m $1.22m
Moorabbin $42,975 $220,700 $1.27m $1.22m
Niddrie $37,000 $190,000 $1.25m $1.22m
Newport $26,000 $133,500 $1.25m $1.22m
Abbotsford $30,800 $158,200 $1.23m $1.20m
Essendon North $37,250 $191,300 $1.23m $1.19m
Wantirna South $41,800 $214,600 $1.22m $1.18m
Clayton $33,100 $170,000 $1.21m $1.18m
Eltham $49,500 $254,200 $1.22m $1.17m
Chadstone $35,250 $181,000 $1.20m $1.17m
Ringwood North $43,500 $223,400 $1.22m $1.17m
Cheltenham $43,500 $223,400 $1.20m $1.16m
Oakleigh East $35,500 $182,300 $1.19m $1.15m
Patterson Lakes $37,360 $191,800 $1.18m $1.14m
Oakleigh South $37,875 $194,500 $1.18m $1.14m
Forest Hill $41,000 $210,500 $1.19m $1.14m
Collingwood $31,000 $159,200 $1.17m $1.14m
Pascoe Vale South $36,500 $187,400 $1.17m $1.13m
Preston $30,500 $156,600 $1.16m $1.13m
Altona $36,000 $184,900 $1.17m $1.13m
Coburg $29,625 $152,100 $1.16m $1.13m
Viewbank $52,000 $267,000 $1.17m $1.12m
Safety Beach $31,000 $159,200 $1.15m $1.12m
Macleod $41,000 $210,500 $1.15m $1.11m
Frankston South $45,000 $231,100 $1.16m $1.11m
Nunawading $38,000 $195,100 $1.15m $1.11m
Keilor $55,750 $286,300 $1.16m $1.10m
Spotswood $26,500 $136,100 $1.12m $1.10m
Mitcham $37,000 $190,000 $1.14m $1.10m
Kingsville $24,000 $123,200 $1.12m $1.10m
Yarraville $25,500 $130,900 $1.12m $1.09m
Seddon $20,000 $102,700 $1.10m $1.08m
Montmorency $39,975 $205,300 $1.11m $1.08m
Maribyrnong $33,125 $170,100 $1.10m $1.07m
Mornington $35,000 $179,700 $1.10m $1.06m
Wantirna $44,500 $228,500 $1.10m $1.06m
Olinda $40,000 $205,400 $1.10m $1.06m
Kensington $25,000 $128,400 $1.08m $1.05m
Mulgrave $40,000 $205,400 $1.09m $1.05m
Dingley Village $44,000 $225,900 $1.07m $1.03m
Rowville $36,630 $188,100 $1.05m $1.02m
Flemington $30,250 $155,300 $1.04m $1.01m
Diamond Creek $41,000 $210,500 $1.05m $1.01m
Pascoe Vale $35,000 $179,700 $1.03m $1.00m
Heathmont $38,925 $199,900 $1.04m $999,075
Bonbeach $30,975 $159,100 $1.02m $994,025
Greensborough $43,500 $223,400 $1.03m $991,500
Oak Park $38,500 $197,700 $1.03m $989,000
Ringwood $38,500 $197,700 $1.02m $981,500
Clarinda $39,000 $200,300 $1.01m $974,000
Keilor East $44,000 $225,900 $1.02m $974,000
Yallambie $49,000 $251,600 $1.01m $963,000
Croydon North $42,000 $215,700 $1.00m $958,500
Ringwood East $34,975 $179,600 $991,000 $956,025
Rye $28,000 $143,800 $975,000 $947,000
Coburg North $32,000 $164,300 $972,500 $940,500
Dromana $30,000 $154,100 $970,000 $940,000
Gisborne $44,500 $228,500 $980,000 $935,500
Avondale Heights $40,000 $205,400 $975,000 $935,000
Scoresby $40,000 $205,400 $970,000 $930,000
Wandin North $30,650 $157,400 $960,000 $929,350
Chelsea $35,000 $179,700 $962,500 $927,500
Hurstbridge $37,500 $192,600 $960,000 $922,500
Briar Hill $46,400 $238,300 $968,000 $921,600
Footscray $23,000 $118,100 $943,000 $920,000
Emerald $35,350 $181,500 $950,000 $914,650
Chelsea Heights $35,950 $184,600 $945,000 $909,050
Yarra Glen $30,000 $154,100 $935,000 $905,000
Altona North $37,650 $193,300 $942,500 $904,850
Montrose $37,000 $190,000 $941,500 $904,500
Taylors Lakes $46,950 $241,100 $950,000 $903,050
Watsonia $37,600 $193,100 $940,000 $902,400
Airport West $36,000 $184,900 $937,500 $901,500
Clayton South $38,470 $197,500 $937,000 $898,530
West Footscray $26,000 $133,500 $920,000 $894,000
Knoxfield $37,250 $191,300 $928,500 $891,250
Keysborough $38,500 $197,700 $908,000 $869,500
Bayswater North $37,300 $191,500 $894,800 $857,500
Reservoir $34,000 $174,600 $890,000 $856,000
Croydon South $36,500 $187,400 $890,000 $853,500
Croydon $36,000 $184,900 $888,000 $852,000
Carrum $29,750 $152,800 $880,500 $850,750
Heidelberg Heights $35,500 $182,300 $880,000 $844,500
Watsonia North $42,600 $218,800 $886,600 $844,000
The Basin $33,000 $169,500 $871,000 $838,000
Ferntree Gully $36,350 $186,700 $873,000 $836,650
Tootgarook $29,000 $148,900 $865,000 $836,000
Berwick $41,625 $213,700 $875,000 $833,375
Tecoma $31,000 $159,200 $860,000 $829,000
Bayswater $37,200 $191,000 $865,000 $827,800
Upper Ferntree Gully $30,750 $157,900 $856,500 $825,750
Monbulk $35,000 $179,700 $860,200 $825,200
Upwey $33,500 $172,000 $857,600 $824,100
Somerville $34,000 $174,600 $855,000 $821,000
Tyabb $34,950 $179,500 $850,000 $815,050
Boronia $35,500 $182,300 $850,000 $814,500
Hadfield $35,000 $179,700 $848,800 $813,800
Langwarrin $39,000 $200,300 $850,000 $811,000
Bundoora $42,000 $215,700 $852,000 $810,000
Springvale $33,000 $169,500 $842,000 $809,000
Lilydale $33,225 $170,600 $840,000 $806,775
Mount Evelyn $31,000 $159,200 $835,000 $804,000
Belgrave $31,000 $159,200 $835,000 $804,000
Chirnside Park $45,000 $231,100 $842,500 $797,500
Maidstone $27,500 $141,200 $820,000 $792,500
Seaford $33,000 $169,500 $825,000 $792,000
Springvale South $38,000 $195,100 $820,000 $782,000
Keilor Park $45,000 $231,100 $824,200 $779,200
Glenroy $34,000 $174,600 $811,000 $777,000
Mooroolbark $36,475 $187,300 $812,500 $776,025
Endeavour Hills $38,950 $200,000 $810,000 $771,050
Kingsbury $36,125 $185,500 $800,000 $763,875
Healesville $29,750 $152,800 $792,500 $762,750
Kilsyth $36,500 $187,400 $795,000 $758,500
Heidelberg West $28,875 $148,300 $780,000 $751,125
Sunshine $27,000 $138,600 $773,500 $746,500
Mill Park $43,975 $225,800 $790,000 $746,025
Noble Park North $37,000 $190,000 $775,000 $738,000
Noble Park $35,000 $179,700 $770,000 $735,000
Rosebud $27,500 $141,200 $760,000 $732,500
Fawkner $35,000 $179,700 $766,500 $731,500
Keilor Downs $41,350 $212,300 $765,000 $723,650
Cockatoo $27,275 $140,100 $750,000 $722,725
Dandenong North $38,000 $195,100 $755,000 $717,000
Albion $25,500 $130,900 $737,500 $712,000
Braybrook $24,475 $125,700 $735,000 $710,525
Narre Warren $34,995 $179,700 $745,000 $710,005
Sunshine North $30,000 $154,100 $735,000 $705,000
Tullamarine $43,675 $224,300 $745,000 $701,325
Frankston $36,000 $184,900 $735,000 $699,000
Baxter $32,000 $164,300 $730,000 $698,000
Hallam $37,000 $190,000 $730,000 $693,000
Gladstone Park $42,000 $215,700 $734,000 $692,000
Altona Meadows $39,000 $200,300 $730,000 $691,000
Capel Sound $29,200 $149,900 $720,000 $690,800
Yarra Junction $25,750 $132,200 $715,000 $689,250
Launching Place $34,000 $174,600 $722,000 $688,000
Thomastown $39,000 $200,300 $720,000 $681,000
Crib Point $25,500 $130,900 $705,000 $679,500
Carrum Downs $34,950 $179,500 $711,000 $676,050
Dandenong $34,440 $176,900 $710,000 $675,560
Whittlesea $39,975 $205,300 $712,500 $672,525
Lalor $37,500 $192,600 $701,000 $663,500
Woori Yallock $27,000 $138,600 $690,000 $663,000
Kealba $39,000 $200,300 $700,000 $661,000
Warburton $22,500 $115,500 $667,500 $645,000
Sunshine West $36,000 $184,900 $680,000 $644,000
Ardeer $30,500 $156,600 $672,500 $642,000
Hastings $33,950 $174,300 $670,000 $636,050
Sunbury $37,000 $190,000 $670,000 $633,000
Deer Park $35,000 $179,700 $667,000 $632,000
Hampton Park $34,950 $179,500 $665,000 $630,050
Cranbourne $33,250 $170,700 $660,000 $626,750
Epping $40,248 $206,700 $665,000 $624,752
St Albans $35,000 $179,700 $655,000 $620,000
Westmeadows $44,250 $227,200 $660,000 $615,750
Diggers Rest $34,500 $177,200 $650,000 $615,500
Pakenham $36,900 $189,500 $650,500 $613,600
Craigieburn $37,500 $192,600 $650,000 $612,500
Hoppers Crossing $38,000 $195,100 $621,000 $583,000
Campbellfield $38,000 $195,100 $621,000 $583,000
Frankston North $24,625 $126,500 $605,000 $580,375
Kings Park $36,500 $187,400 $615,000 $578,500
Albanvale $35,000 $179,700 $612,000 $577,000
Millgrove $23,350 $119,900 $597,500 $574,150
Werribee $35,973 $184,700 $610,000 $574,027
Doveton $27,250 $139,900 $600,000 $572,750
Jacana $30,000 $154,100 $602,000 $572,000
Bacchus Marsh $39,400 $202,300 $610,000 $570,600
Broadmeadows $28,000 $143,800 $592,500 $564,500
Laverton $30,000 $154,100 $590,000 $560,000
Wyndham Vale $33,775 $173,400 $575,500 $541,725
Coolaroo $29,000 $148,900 $560,000 $531,000
Dallas $31,000 $159,200 $555,000 $524,000
Melton West $35,050 $180,000 $540,000 $504,950
Melton South $30,500 $156,600 $519,200 $488,700
Melton $30,000 $154,100 $475,000 $445,000

Source: PropTrack

Top Melbourne suburbs where unit prices soared since 1980

Suburb 1980’s Average Price 1980 Price (Indexed to 2025) 2025 Projected Price Difference (2025 – 1980)
Brighton $61,000 $313,200 $1.31m $1.25m
Beaumaris $49,600 $254,700 $1.28m $1.23m
Black Rock $47,000 $241,300 $1.27m $1.23m
Brighton East $49,750 $255,500 $1.19m $1.14m
Mount Waverley $40,000 $205,400 $1.09m $1.05m
Canterbury $44,250 $227,200 $1.08m $1.04m
Toorak $60,250 $309,400 $990,000 $929,750
Glen Waverley $47,950 $246,200 $946,500 $898,550
Hampton $41,000 $210,500 $927,500 $886,500
Vermont $45,125 $231,700 $928,900 $883,775
Caulfield South $34,000 $174,600 $900,000 $866,000
Camberwell $47,000 $241,300 $895,500 $848,500
Clifton Hill $24,300 $124,800 $870,000 $845,700
Surrey Hills $42,075 $216,100 $870,000 $827,925
Mitcham $37,625 $193,200 $863,000 $825,375
Kew $54,225 $278,400 $879,000 $824,775
Bentleigh East $30,000 $154,100 $850,000 $820,000
Box Hill North $40,500 $208,000 $858,000 $817,500
Balwyn $50,000 $256,800 $851,800 $801,800
Williamstown $38,500 $197,700 $840,000 $801,500
Aspendale $30,000 $154,100 $822,200 $792,200
Nunawading $34,250 $175,900 $825,000 $790,750
Glen Iris $37,625 $193,200 $820,000 $782,375
Parkdale $33,750 $173,300 $802,500 $768,750
Mont Albert $44,500 $228,500 $800,000 $755,500
Mornington $34,500 $177,200 $757,000 $722,500
Fairfield $18,500 $95,000 $735,000 $716,500
Clayton $33,500 $172,000 $750,000 $716,500
Hughesdale $36,000 $184,900 $746,500 $710,500
Bonbeach $28,375 $145,700 $730,800 $702,425
Murrumbeena $27,000 $138,600 $722,500 $695,500
Ringwood East $36,500 $187,400 $730,000 $693,500
Greensborough $38,000 $195,100 $728,000 $690,000
Ivanhoe $44,000 $225,900 $730,000 $686,000
Mordialloc $29,000 $148,900 $713,800 $684,800
Elsternwick $37,250 $191,300 $722,000 $684,750
Altona $36,000 $184,900 $720,000 $684,000
Bentleigh $34,000 $174,600 $711,000 $677,000
Chelsea $29,875 $153,400 $705,000 $675,125
Armadale $33,125 $170,100 $702,500 $669,375
Malvern $41,250 $211,800 $709,000 $667,750
Mentone $33,750 $173,300 $690,000 $656,250
Cheltenham $33,358 $171,300 $683,000 $649,642
Bayswater $31,500 $161,800 $680,000 $648,500
Croydon $32,000 $164,300 $680,000 $648,000
Sandringham $41,250 $211,800 $687,500 $646,250
Ferntree Gully $32,300 $165,900 $665,500 $633,200
Elwood $28,500 $146,300 $660,000 $631,500
Northcote $21,000 $107,800 $650,000 $629,000
Boronia $33,000 $169,500 $660,500 $627,500
Glen Huntly $40,000 $205,400 $666,000 $626,000
Thornbury $21,000 $107,800 $645,000 $624,000
Heidelberg $41,500 $213,100 $665,000 $623,500
Carnegie $34,250 $175,900 $650,000 $615,750
Fitzroy North $30,000 $154,100 $645,000 $615,000
Seaford $33,000 $169,500 $645,000 $612,000
Blackburn $40,000 $205,400 $652,000 $612,000
Pascoe Vale $34,500 $177,200 $645,000 $610,500
Caulfield North $36,500 $187,400 $641,000 $604,500
Preston $31,500 $161,800 $631,200 $599,700
Bayswater North $30,500 $156,600 $630,000 $599,500
Highett $34,500 $177,200 $631,800 $597,300
Ormond $24,000 $123,200 $620,000 $596,000
Capel Sound $32,625 $167,500 $627,500 $594,875
Reservoir $32,000 $164,300 $625,000 $593,000
Springvale $30,500 $156,600 $622,000 $591,500
Springvale South $33,000 $169,500 $621,500 $588,500
St Kilda East $30,000 $154,100 $610,000 $580,000
Ringwood $35,700 $183,300 $615,000 $579,300
West Footscray $30,000 $154,100 $609,000 $579,000
Doncaster $43,750 $224,700 $608,000 $564,250
Hawthorn $38,159 $195,900 $599,500 $561,341
Brunswick $27,250 $139,900 $588,000 $560,750
Balaclava $27,000 $138,600 $585,800 $558,800
Richmond $19,950 $102,400 $575,000 $555,050
Malvern East $36,500 $187,400 $588,500 $552,000
Box Hill $36,250 $186,100 $586,000 $549,750
Hawthorn East $30,250 $155,300 $577,500 $547,250
Glenroy $33,000 $169,500 $580,000 $547,000
Oakleigh $37,000 $190,000 $583,500 $546,500
Coburg $28,000 $143,800 $572,000 $544,000
Essendon $37,000 $190,000 $580,000 $543,000
Moonee Ponds $35,750 $183,600 $572,500 $536,750
St Kilda West $25,750 $132,200 $550,000 $524,250
Noble Park $31,500 $161,800 $555,000 $523,500
Frankston $33,000 $169,500 $550,000 $517,000
Tullamarine $41,000 $210,500 $557,500 $516,500
Ascot Vale $25,000 $128,400 $539,000 $514,000
Footscray $22,750 $116,800 $530,000 $507,250
Windsor $30,000 $154,100 $535,500 $505,500
Brunswick West $27,000 $138,600 $530,000 $503,000
South Yarra $38,000 $195,100 $540,000 $502,000
Albion $19,750 $101,400 $520,000 $500,250
Burwood East $47,000 $241,300 $542,000 $495,000
St Kilda $24,125 $123,900 $505,000 $480,875
Maribyrnong $24,450 $125,600 $490,000 $465,550
Prahran $33,000 $169,500 $491,800 $458,800
Cranbourne $26,975 $138,500 $480,000 $453,025
Dandenong $29,000 $148,900 $472,500 $443,500
Parkville $63,500 $326,100 $500,000 $436,500
North Melbourne $32,500 $166,900 $465,000 $432,500
Melbourne $47,000 $241,300 $440,000 $393,000
Carlton $66,500 $341,500 $342,500 $276,000

Source: PropTrack

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Inside tradie couple’s stunning Palm Springs-inspired home flip

Madison and Hayden Cameron are selling their home at 87 Bienvenue Drive, Currumbin Waters

Hayden and Madison Cameron dreamed of a sea change after flipping their first home interstate, but were shocked by Queensland’s soaring property prices.

The couple had a budget of $1m, but found homes were about $300,000 more than they would expect to pay for a similar property in their home state of Victoria.

They secured a dilapidated deceased estate in an up-and-coming Gold Coast pocket and transformed it into a contemporary beach house that is now on the market.

A generational analysis by PropTrack shows it is now five times harder for young homebuyers in Queensland to get on the property ladder than it was for previous generations.

Real Estate

The couple moved from Victoria to the Gold Coast. Picure: Annette Dew

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The study compared house prices in every suburb through the decades, with values adjusted for inflation to reveal the real cost of owning a home in today’s dollars.

In Currumbin Waters where the Camerons bought, a typical house cost $28,200 in 1980, or $150,400 adjusted to reflect rising living costs since that time.

But the median house price in the suburb now sits at $1.37m.

The data shows it is nine times harder for young buyers today to own a house in the popular beachside suburb than it was 45 years ago, reflecting an enduring demand for coastal property which surged during the pandemic.

The single-level home has five bedrooms and two bathrooms

Mr Cameron is a builder, while Ms Cameron, a midwife, has an eye for design.

The couple, who are expecting their first child, engaged buyers agent Alex Pope to purchase a lowset house off market for $1.005m in June 2023.

“The market was starting to heat up from we first started looking to when we bought, but I feel like we got a good deal through going with Alex,” Ms Cameron said.

“Luckily, we had bought our last house in Dromana on the Mornington Peninsula just before Covid and sold in the height of the market,” she said.

The al fresco dining area has a built-in barbecue

Despite making good profit on their first project, they faced the reality of Queensland’s booming market, with Brisbane home values overtaking Melbourne’s last year for the first time in 14 years.

“They had a tricky budget as they only had $1m to spend and were conditioned to what that amount could buy where they had lived, which made it a little challenging purchasing a full-size home in a great location that might also have renovation uplift,” Mr Pope said.

“Buyers who are happy to get a property that is a little more original and then renovate, they are the ones who are really setting themselves up for success to start creating equity in that property very quickly.

“My advice to young buyers is that your first property isn’t your last, but it does catapult you to the next.”

Modern coastal meets Palm Springs

The Camerons undertook a full renovation, creating a luxurious five-bedroom, two-bathroom home with Palm Springs flair, complete with a coastal-inspired neutral palette of high-end finishes and features including a stunning al fresco zone with a pool and barbecue kitchen.

“The house was a 1980s-style build with a kidney-shaped pool which was green and swampy when we bought it, but we could see the potential,” Ms Cameron said.

“This is the second home we’ve renovated and after selling in Melbourne we knew we wanted to be on the Gold Coast because we loved the lifestyle and the weather, and Hayden loves surfing.”

Their home at 87 Bienvenue Dr is being sold via an expressions of interest campaign with Base Property Group agents Paul and Max Kearney.

On-trend style for a modern family

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Locked out: Generation faces housing crisis catastrophe

Australia’s housing affordability crisis has reached code red status as runaway construction costs threaten to permanently lock out a generation of potential homeowners.

A new analysis reveals a construction sector in turmoil, with renovation expenses surging a staggering 43 per cent since late 2019 and building material prices remaining stubbornly elevated, sitting 35.4 per cent above pre-pandemic levels.

The crisis, driven by a perfect storm of crippling labour shortages, supply chain disruptions, and soaring prices for essential materials is prompting urgent calls for government intervention to prevent a full-blown housing catastrophe.

Exclusive data by the Housing Industry Association shows essential materials are bleeding budgets dry, with the cost of copper pipes and fittings skyrocketing by 14.4 per cent annually and 63.4 per cent since the end of 2019.

The cost of electrical cable and conduit are equally alarming, jumping 9.5 per cent annually and a shocking 69.7 per cent since the end of 2019.

Even the humble clay brick, a cornerstone of Australian construction, has surged by 8.3 per cent annually and 48.4 per cent since the end of 2019, while timber doors rose by 7.4 per cent annually.

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Source: HIA

Only materials like plywood, steel beams, plastic sanitary ware, reinforcing steel, sheet metal and other electrical equipment saw a reduction in cost between 4 per cent and 9 per cent.

However, it’s a drop in the ocean, considering the cost of skilled labour, which saw a 5.5 per cent increase over the 12 months to March, with those looking to build now paying 35.5 per cent more for a home than they did pre Covid.

To put it in numbers, the average national build cost now is $484,315, according to March figures by the Bureau of Statistics, $18,832 more than the previous year and $152,969 more since pre-Covid in 2020, when the average build cost just $331,346.

Source:HIA

HIA senior economist Tom Devitt said while the numbers looked bleak, the cost of construction material was starting to stabilise.

“Some of the numbers shared do show a few materials are still going up really rapidly…but the average building materials have actually really slowed. They are still very much elevated from five years ago but they do look like they’ve stabilised.

“Labor costs are also still increasing quite rapidly but also not as much as they did three years ago. Our trade report two or three years ago had a single year where trade prices went up 10 per cent.”

Mr Devitt said while the cost of materials would come down with time, the real concern going forward was ongoing labour shortages.

“The demand is still going to be outstripping the supply of trades unless the government follows through on what they’ve been paying lip service to in terms of fast tracking in-demand construction trades,” he said.

“(So far) nothing has really progressed from that because the number of skilled trades that have been arriving, relative to overall overseas arrivals, has been minute.”

The hidden cost behind Australia’s homebuilding struggles

An analysis by NextMinute, a leading project management software for tradies, recently shed light on the occupations with the highest vacancy rates and the most job ad listings across Australia, revealing a stark disparity between supply and demand in the trade sector.

Official figures indicate that motor mechanics, electricians, and welders are among the most sought-after trades, with thousands of vacancies across all Australian states.

However, SEEK job ad volumes suggest the demand is far greater, with listings for electricians alone exceeding six times the official vacancy count.

Similarly, there are 9749 listings for mechanics and 2706 for welders, reflecting widespread recruitment challenges in the industry.

Despite attractive salaries, several trades remain under-represented in global job searches, such as airconditioning and refrigeration mechanics, who earn over $2000 per week.

Occupations with the most job searches. Source: NextMinute

Front Page - Tradie

Tradie Ben Collins from Park Lane Carpentry pictured in Maroubra. Picture: Sam Ruttyn

The United Kingdom leads overseas demand, with UK-based workers conducting thousands of monthly searches for Australian trade jobs.

NextMinute CEO Alex Jenks said the discrepancy highlighted the ongoing recruitment challenges faced by trade businesses.

These shortages are slowing down projects, driving up costs, and putting pressure on business owners,” he said.

“Interestingly, the countries showing the most interest don’t always align with the trades in greatest need.

“For example, airconditioning and refrigeration mechanics have over 500 official vacancies, but little international search activity, pointing to blind spots in global awareness of Australia’s workforce needs.”

Australia needs to think modular

With Australia forecast to fall 262,000 homes short of its national 1.2 million housing target by 2029, Ray White Group senior economist Nerida Conisbee said a modular approach was needed to address ongoing construction concerns.

“It’s taking things like trusses off site and making it more of a manufacturing process, as opposed to building them on site where you need far more skilled labour,” she said.

“Another example would be kitchens and bathrooms which are really time consuming and expensive to build on site. So if you just have to assemble them within a house, that makes it a lot cheaper…everything else can be done offshore.

“Another thing to look at would be the way we design houses. One of the reasons why it’s so expensive to build is because Australians really love their houses to be different from their neighbours.

“And so, if we’re looking at new areas, if we’re starting to build houses that are very similar, then it becomes a lot quicker and cheaper to build houses.”

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Queensland’s most popular properties revealed

49 Tallebudgera Connection Road, Tallebudgera, Qld 4228

A well-known Gold Coast mansion on and off the market for more than four years has been crowned the most popular property in Queensland.

Billionaire developer Riyu Li’s Tallebudgera estate known as Bellagio La Villa continues to attract attention despite languishing on the market since 2021.

Bellagio La Villa at 49-109 Tallebudgera Connection Rd, Tallebudgera.

Inside Bellagio La Villa.

It is the most clicked-on property on realestate.com.au in the Sunshine State with 58619 views over 12 months to April, 2025

It is also the fourth most popular property in the country.

Mr Li, who initiated the $1bn Jewel three-tower project in Surfers Paradise, stunned the real estate industry when he reportedly turned down a cash offer of $42m for his Tallebudgera property, announced at auction in 2023.

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The meticulous attention to detail is evident at Bellagio La Villa.

The pool at Bellagio.

Wrought iron gates lead onto manicured hedges and foundations, while inside finishes of the extravagant 10-bedroom mansion include coffered ceilings, marble floors, crystal chandeliers, and French doors.

There’s also a showroom garage which doubles as a ballroom, baroque-style formal dining room, heated indoor pool and spa, sauna and gym, and an in-house pet grooming salon.

Enjoy a stroll around the grounds at Bellagio La Villa.

Bellagio La Villa is something else!

Marketing agent Lucy Cole of her self-titled agency said Bellagio La Villa was currently listed around $30m.

She said there was nothing that could match it in Queensland with potential buyers always “blown away” when they arrive.

“You can just see by the look of their face,” Ms Cole said.

“They drive in and their car slows down as they come through the beautiful grounds, the avenues of trees, before they even get to the front door.

“There are people who like to dream but then there are genuine people who are calling from interstate and overseas who appreciate properties of this calibre.”

170 Camelot Place, Bridgeman Downs.

170 Camelot Place, Bridgeman Downs

The State’s fasciation with luxury real estate showed no signs of slowing down with a huge Bridgeman Downs estate racking up 48859 clicks.

The residence, on a huge 9628sq m block includes an outdoor kitchen, infinity edge pool with hot spa and poolside gazebo as well as a basketball court.

29 Cooran Court, Noosa Heads.

29 Cooran Court, Noosa Heads.

Rounding out the top three houses was a luxury Noosa Heads property on the market with an eye-popping $31m price tag.

The five-bedroom home at 29 Cooran Court features a Palm Springs mid-century modern design.

More reminiscent of a resort, gates open to a walkway, established gardens and a bridge over pond.

The most popular unit listing was described as an “investment opportunity” at Minchinton Street, Caloundra.

On the market at offers over $475,000, it racked up 28998 clicks.

307 Gympie Terrace, Noosa was the fourth most popular home in Queensland.

26-34 Knightsbridge Parade East, Sovereign Islands came in number five.

Queensland’s most popular listings HOUSES

Address, clicks on realestate.com.au over the past 12 months

49-109 Tallebudgera Connection Rd, Tallebudgera, 58619

170 Camelot Place, Bridgeman Downs, 48859

29 Cooran Court, Noosa Heads, 47569

307 Gympie Terrace, Noosaville, 38223

26-34 Knightsbridge Parade East, Sovereign Islands, 37652

52 Wendell St, Norman Park, 33950

13 Deodar Drive, Burleigh Heads, 32161

134 Valley Drive, Doonan, 31649

87-89 Monaco St, Broadbeach Waters, 31272

***

Queensland’s most popular listings UNITS

Address, clicks on realestate.com.au over the past 12 months

5/34 Minchinton St, Caloundra, 28998

4701/443 Queen St, Brisbane City, 26136

5 Spalding Crescent Goodna, 22247

5/8 Twigg St, Indooroopilly, 17304

Unit 73/19 Orchid Ave, Surfers Paradise, 16762

305/77 Jurgens St, Woolloongabba, 15879

2110/2-22 Veivers Rd, Palm Cove, 15810

2877 Gold Coast Highway, Surfers Paradise, 15752

Level 9/229 Queen Street, Brisbane City, 15562

1410 & 1411/3458 Main Beach Pde, Surfers Paradise, 15363

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OK Boomer, what a 1980s house really costs buyers today

New data shows the difference between 1980s price adjusted for inflation in 2025 and actual prices.

Hopeful Geelong home buyers are paying substantially more money relative to the cost of everything else than generations before them, alarming new analysis reveals.

The exclusive PropTrack research showed home prices were four-times higher than in 1980 once adjusted for inflation.

But today’s buyers are paying between two and eight-times on top of the adjusted prices for a typical house in many suburbs.

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The research measured housing costs across each decade, showing property prices over the 1990s, 2000s and 2010s were also markedly cheaper when compared to other living costs.

Geelong’s $26,500 median house price in 1980 is equivalent to $136,100 in today’s money, while the $470,000 median in 2000 is worth $682,400 in today’s dollars.

But that’s well short of the actual $890,000 median house price in 2025.

The study also showed the dramatic shift in Geelong’s property market map, particularly as a result of gentrification.

Geelong West was the cheapest suburb back in 1980 when a typical house cost $23,075, cheaper than the average house in Norlane at the time.

In today’s money that’s just $118,000. The actual median price in the suburb is more than six-times higher at $872,000.

Inner suburbs such as Geelong, East Geelong and Manifold Heights had median house prices less than $30,000 in 1980.

35 Elizabeth St, Geelong West, is listed for sale with $790,000 to $850,000.

A typical house cost $34,000 in Newtown in 1980 ($177,200 in today’s money) compared to $1.117m today, while Highton was the most expensive suburb with a $48,000 median house price.

That’s $338,900 when adjusted for inflation, but is now worth $875,000.

Geelong buyers advocate Tony Slack said how typical buyers were entering the market today were different as the cost of housing increased compared to incomes.

“If you’re single or a couple and you’re renting, it does it make hard to crack in to the market,” he said.

“Without a doubt that there’s more family money there,” he said.

The four-bedroom house at 6 Orchid St, Norlane, is listed for sale with price hopes from $500,000 to $550,000.

“And government schemes are the same thing – they weren’t available when I bought the first time.

“I think the cost of living in the old days, there just seemed to be more money left over.”

Mr Slack said buyers were less prepared to buy a house that needed to improvements, but worked within a budget that favours lifestyle attributes, such as being close to a network of friends, family, work and social activities.

He said buyers often purchased their first home as a stepping stone, considering other factors such as schools with their second purchase.

“That worst house in the best street doesn’t seem to have as much bearing as it used to,” he said.

The three-bedroom house at 47 Olney Ave, Thomson, is listed for sale with price hopes from $625,000 to $655,000.

The study laid bare the widening generational wealth gap, with long-term home owners sitting on huge capital gains, while today’s first-time buyers are confronted with higher deposits, debt burdens.

PropTrack senior economist Angus Moore said the rapid growth in home prices since the early 1990s was linked to lower interest rates during that time.

The Reserve Bank of Australia this month cut 25 basis points from the official cash rate, now at 3.85 per cent compared to a high of 17 per cent in 1990.

Lower interest rates reduce the cost of borrowing, allowing buyers to afford larger loans, which can drive up property prices.

But the boost in borrowing power does not offset the growing cost of saving for a deposit.

“The deposit hurdle is just unequivocally harder than it was four or five decades ago, and that has manifested in home ownership rates which have fallen over those years,” Mr Moore said.

WHAT A 1980s house really costs today

Suburb Property type 1980 median price In today’s money Actual 2025 median price
Anglesea H $35,000 $179,700 $1,410,000
Barwon Heads H $28,450 $146,100 $1,425,000
Bell Park H $30,000 $154,100 $630,000
Bell Post Hill H $37,000 $190,000 $660,000
Belmont H $34,000 $174,600 $705,000
Clifton Springs H $35,500 $182,300 $652,600
Corio H $29,000 $148,900 $490,000
East Geelong H $26,000 $133,500 $772,500
Geelong H $26,500 $136,100 $890,000
Geelong West H $23,075 $118,500 $872,500
Grovedale H $41,000 $210,500 $669,800
Hamlyn Heights H $32,500 $166,900 $717,500
Herne Hill H $31,000 $159,200 $700,000
Highton H $48,125 $247,100 $875,000
Jan Juc H $30,000 $154,100 $1,250,000
Lara H $35,825 $184,000 $680,200
Leopold H $42,000 $215,700 $657,500
Lorne H $40,000 $205,400 $1,678,000
Manifold Heights H $29,250 $150,200 $1,121,200
Newcomb H $28,750 $147,600 $551,000
Newtown H $34,500 $177,200 $1,117,500
Norlane H $23,500 $120,700 $453,500
North Geelong H $24,325 $124,900 $620,000
Ocean Grove H $35,900 $184,300 $972,500
Point Lonsdale H $39,500 $202,800 $1,200,000
Portarlington H $31,125 $159,800 $848,800
St Leonards H $27,750 $142,500 $720,000
Thomson H $27,500 $141,200 $512,500
Torquay H $31,500 $161,800 $1,185,000
Belmont U $30,250 $155,300 $548,000
Highton U $35,000 $179,700 $520,000
Newtown U $31,750 $163,000 $620,000

The post OK Boomer, what a 1980s house really costs buyers today appeared first on realestate.com.au.

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Mortgage rates unfazed by crazy economic headlines

In one of the most chaotic weeks for economic headlines of the year, mortgage rates remained relatively stable, which is a stark contrast to the madness caused by the Godzilla tariffs a few weeks ago. Can this stability last? 

Despite elevated rates, having fewer wild fluctuations on a day-to-day basis creates a healthier mortgage market for consumers and those working in the mortgage and real estate industry. Let’s take a look at the week.

10-year yield and mortgage rates

In my 2025 forecast, I anticipated the following ranges:

  • Mortgage rates will be between 5.75% and 7.25%
  • The 10-year yield will fluctuate between 3.80% and 4.70%

The wild week kicked off last Sunday night when FHFA Chairman Bill Pulte boldly urged Powell to slash rates, declaring that “enough is enough.” Then Trump announced he wants to take the GSEs public with an implicit guarantee. Later on in the week, President Trump shared my article on the day he met with Fed Chairman Jerome Powell, emphasizing the urgent need for a rate cut to the Fed Chairman.

But that’s not all — Trump faced a setback in court regarding his Godzilla tariffs, only to bounce back and issue a staggering 50% tariff on steel late Friday night. What a whirlwind of developments! To top it off, we had tame PCE inflation data released on Friday,  the market yawned at that and the 10-year yield closed the week around 4.40%, while mortgage rates finished slightly lower.

There’s even more news to unpack, so tune into the HousingWire Daily podcast on Monday.

chart visualization

Mortgage spreads

Mortgage spreads have been elevated since 2022 but have improved since their peak in 2023. We experienced some drama with the spreads as the markets dealt with the tariffs, but things have improved as the market has calmed down. It’s been essential to see spreads get better on days when the 10-year yield goes up because that limits the damage of a higher 10-year yield. 

If the spreads were as bad as they were at the peak of 2023, mortgage rates would currently be 0.67%  higher. Conversely, if the spreads returned to their normal range, mortgage rates would be 0.83% to 0.63% % lower than today’s level. Historically, mortgage spreads have typically ranged between 1.60% and 1.80%.

chart visualization

Purchase application data

Last week, purchase application data increased by 18% year-over-year, up 3% from the previous week. The most unloved economic data of 2025 is likely due to confusion; I recently discussed this data line in this podcast. We have a 17-week winning streak on positive year-over-year growth and four straight weeks of double-digit growth during the peak seasonal month of May. Traditionally, after May, volumes tend to fall.

Here is the weekly data for 2025:

  • 10 positive readings
  • 7 negative readings
  • 3 flat prints
  • 17 straight weeks of positive year-over-year data 

chart visualization

Total pending sales

The latest weekly data on total pending sales from Altos provides valuable insights into current trends in housing demand. Typically, mortgage rates near 6% are required to foster real growth in the housing market. While total pending home sales are slightly higher than last year, it is surprising to see this data remain steady despite elevated rates in 2025. We are clearly at the seasonal peak period for this data line in terms of volumes and will soon see the seasonal decline. 

Weekly pending sales for the last week over the past several years:

  • 2025: 413,771
  • 2024: 406,136

chart visualization

Weekly pending sales

As I noted last week, I have added weekly pending sales data to this tracker. While this data provides the most up-to-date week-to-week information, it can be affected by the calendar year’s volatility and any events that may occur. Due to the Memorial Day weekend, this data line was affected, so that we will have a better idea of its performance in two weeks.

Weekly pending sales for last week over the past several years:

  • 2025: 72,312
  • 2024: 62,919

chart visualization

Weekly housing inventory data

The most exciting development in the housing market for 2024 and 2025 is the increase in inventory. Inventory needs to return to pre-pandemic levels for the housing market to operate more effectively. The seasonal increase in inventory is much needed as the country is working its way back to normal. Again, once we get to 2019 levels, all the low inventory talk goes away.  For our data lines, we have reached the bottom end of the 2019 inventory.

  • Weekly inventory change (May 23-May 30): Inventory rose from 787,049 to 803,519
  • The same week last year (May 24-May 31): Inventory rose from 594,584 to 604,922

chart visualization

New listings data

As inventory has grown, we’ve finally gotten out of the two-year drought of new listing data, and we’re back above 80,000 per week during the seasonal peak months. I had forecasted this for last year, but it didn’t happen. I kept that forecast for 2025, and we are here today with the second print over 80,000. This data line, as it always does, gets impacted by holiday weekends; we should see an increase next week. 

To give you some perspective, during the years of the housing bubble crash, new listings were soaring between 250,000 and 400,000 per week for many years.

  • 2025: 70,421
  • 2024: 63,463

chart visualization

Price-cut percentage

In a typical year, about one-third of homes experience price reductions, highlighting the housing market’s dynamic nature. Many homeowners adjust their sale prices as inventory levels rise and mortgage rates stay elevated.

For my 2025 price forecast, I anticipate a modest increase in home prices of approximately 1.77%. This suggests that 2025 will again see a negative real home price forecast. In 2024, my forecast of a 2.33% increase proved inaccurate, primarily because mortgage rates fell toward 6% and demand improved in the second half of 2024. As a result, home prices ended up increasing by 4% in 2024. 

The rise in price reductions this year compared to last year reinforces my cautious growth forecast for 2025. 

  • 2025: 38%
  • 2024: 35%

chart visualization

The week ahead: Jobs week!

As we approach jobs week, it’s an important time for economic indicators. Last week, we received a rather subdued PCE inflation report with headline PCE recorded at 2.1%, which didn’t seem to prompt much reaction from the bond market. However, the labor data remains a crucial focus for both the Federal Reserve and bond market participants.

chart visualization

Fed President Waller will speak on Monday, and we have some PMI data to consider. Although the mortgage market remained calm last week, the upcoming week may bring some volatility.

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How Melbourne’s surprise biggest auction week could change market

34 Balmerino Ave, Toorak - for herald sun real estate

34 Balmerino Ave, Toorak, became the biggest sale of Melbourne’s biggest auction week in 2025.

Melbourne’s auction market is on the cusp of generational change as the city prepares for one of its busiest starts to winter on record.

Yesterday Victoria tackled the bulk of its busiest week under the hammer since spring last year, with a whopping 1477 homes slated to test the market.

PropTrack figures show an initial clearance rate at 70.3 per cent from 1038 result was recorded, with a Toorak home at 34 Balmerino Ave setting the pace with a $6.11m sale that topped the market.

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Economist Anne Flaherty said as the third similarly strong result in as many weeks, it was a positive sign that lower interest rates and growing investor activity would keep sellers celebrating as winter kicked off.

Next week a Kings Birthday public holiday on Monday has cut expected auctions to just 500.

But the following week is forecast to host more than 1000, a buoyant number historically reserved for spring.

42 Bruce St, Toorak - for herald sun real estate

42 Bruce St, Toorak, was the day’s second biggest result at $6.1m.

Real Estate Institute of Victoria president Jacob Caine said while this weekend had been boosted by being exactly four weeks after the federal election, which had delayed many sellers from listing homes for sale, continued high numbers and clearance rates suggested the city’s auction market was changing — and winter might not be the no go zone it once had been.

“We might need to adjust our expectations around when we will see peaks and troughs of auctions throughout the year,” Mr Caine said.

While he said he believed buyers might still have a “moment of opportunity” a market that was quickly swinging in sellers’ favour was expected to have numbers boosted by both interest rate cuts that were driving sellers to believe there would be more buyers with deep pockets.

15 Latham St, Ivanhoe - for herald sun real estate

15 Latham St, Ivanhoe, sold for $5.32m in one of the biggest results of the biggest auction week of 2025.

“Real estate agents have been having conversations with a lot of owners planning to capitalise on the interest rate cut on the assumption that it will translate into more buyers with more buying power,” Mr Caine said.

“I think there is still a slight advantage for buyers … there’s still a moment of opportunity, especially for first-home buyers, before things swing back to the sellers-market trend we have had for most of the past 15 years.”

Yesterday’s top results included a four-bedroom house at 34 Balmerino Ave, Toorak, at $6.11m, followed by 42 Bruce St, Toorak, which sold for $6.1m.

A 15 Latham St, Ivanhoe, address snared a $5.32m result to round out the top three results.

But not all of the top end listings were so successful.

1-3 Sackville Street, Kew, had been slated for a $10.5m-$11.5m auction – but is now for sale via private treaty with a $12m asking price.

A Kew address that was slated for auction at 1.30pm had $10.5m-$11.5m hopes leading up to it going under the hammer.

The 1-3 Sackville St home is now listed for private sale with a $12m asking price.

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