Expert predicts further gains for sellers as Australian house prices rise for another month

Perth values are still soaring, but there’s a surprise new contender. Picture: Stephen Brookes

It’s full steam ahead for the real estate market coming into Christmas with a new report revealing nationwide home value growth over the past month.

The December edition of PropTrack’s Home Price Index showed national home prices rose by 0.51 per cent in November, pushing annual growth for all dwellings to 8.7 per cent.

Australian houses rose by $89,700 for the year, to now sit at a median value of $969,000. Units grew by $57,400 to reach $713,000.

Three interest rate cuts this year, in addition to population inflow, investor activity and the federal government’s expanded home guarantee scheme were key factors in driving price growth, according to REA Group senior economist Eleanor Creagh.

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“These will continue to bolster demand, along with upgrade activity,” Ms Creagh said. “Meanwhile, stock on market has been pretty tight this year, despite having seen an uplift over the past month with the spring selling surge.”

The sun is shining on the Darwin market this spring. Picture: Getty Images

Regional areas led the way, growing by 0.6 per cent for the month and 9.26 per cent annually, while capital cities grew 0.48 per cent and 8.54 per cent for month and year respectively.

Perth remains the strongest performing capital, with 0.9 per cent growth for the month bringing its annual surge to 15.5 per cent.

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Adelaide matched Perth’s monthly growth and now sits 12.2 per cent higher for the year, while Brisbane’s 0.64 per cent growth has pushed its annual growth to 13.68 per cent.

“We have seen momentum broadening this year, with price growth re-accelerating in Sydney and Melbourne, but also in Hobart and Darwin,” Ms Creagh said. “In terms of annual growth, Darwin is actually the second strongest market in the country, outpaced only by Perth.

“There’s been a very clear acceleration in the pace of growth in Darwin and a very clear turnaround in market conditions.”

Economist Eleanor Creagh says new supply remains constrained. Picture: John Gass

Ms Creagh said there were several factors that could slow growth in 2026

“Broadly, it looks like further price gains into summer, although the extended pause on interest rates and APRA’s cap on high debt to income lending is probably going to temper momentum into the first half of 2026,” she said. “So we could see the pace of growth easing off slightly.”

However, she believes the underlying lack of supply across the nation will “put a floor under home prices”.

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“The delivery of new housing remains constrained, so conditions have been tilted towards sellers and I’d say that’s going to remain the case,” she said. “Building approvals, which are really the best case scenario of what gets built, are still tracking well below target.

“It doesn’t look like we’re going to see a surge in completions, but I’d probably say we’re moving from maybe acute stress toward gradual recovery.”

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