Spring selling season set to sizzle as national home prices hit record highs

Australia’s housing market is heating up just in time for spring, with national home prices climbing 0.5 per cent in August to reach a fresh record high.

This marks the eighth consecutive month of growth, setting the stage for what experts predict will be a blockbuster spring selling season.

Over the past year, home values have surged 5.3 per cent, adding an average $47,900 to the median property price.

The five-year growth story is even more staggering, with home values rocketing 50.4 per cent, underscoring the resilience of the Australian property market.

Capital city markets are leading the charge, with values rising 0.5 per cent in August and 4.9 per cent year-on-year.

MORE NEWS

Revealed: The didden cost crushing home buyer dreams

Block fever sparks mad rush for rundown homes

Revealed: The cities where house prices will soar by 2026

REA Group senior economist Eleanor Creagh said the housing market’s momentum is building at the perfect time for sellers.

“The spring selling season is shaping up to be a big one. Lower interest rates, increased borrowing capacities, and improved buyer sentiment are drawing more Australians back into the market,” she said.

“Demand has re-accelerated in Sydney and Melbourne, marking a sharp turnaround from the slower conditions we saw in late 2024.

“Darwin has also emerged as a surprise leader, with annual growth outpacing all other capitals.”

Source: PropTrack

The spring surge is expected to be fuelled by a combination of factors, including constrained housing supply, strong population growth, and the expansion of the Home Guarantee Scheme in October.

These elements are likely to keep upward pressure on prices, making now an opportune time for sellers to capitalise on the market’s strength.

“Spring is traditionally the busiest time of year for real estate, and with the market gaining momentum, we’re anticipating a wave of new listings and heightened buyer activity,” Creagh added.

MORE NEWS: Aus home landing recovery delayed until 2036

While some capitals like Adelaide and Perth are seeing growth normalise, others are poised for further gains.

Melbourne’s relative affordability and strong population growth are restoring its appeal, while Sydney continues to lead the charge in the nation’s property rebound.

Here’s what to expect across VIC, NSW, SA and QLD this spring.

VICTORIA

Melbourne homebuyers are gearing up for spring in the biggest numbers since the city’s Covid boom amid a rate cut bonanza that’s added almost $100,000 to budgets.

Cashed up first-home buyers, especially tradies, are expected to have one of their best cracks at a purchase in history, with mortgage brokers revealing there has been a surge in inquiries after the federal government announced they would guarantee loans for high earners from October.

If you’re lucky enough to have deep pockets or win the lottery this spring, this five-bedrrom house at 25 Wrixon St, Kew, is priced at $9m-$9.9m. The suburb in Melbourne’s inner east has a $2.62m median house price.

Families are also expected to try for some of the best homes suburbs have to offer, with falling interest rates raising confidence in the city’s property prospects luring back owners who had sat out the past three springs in response to sky-high mortgage costs.

Read the full story here.

QUEENSLAND

As the Southeast Queensland property market heads into spring selling season, buyers will have to be quick with properties selling in less than five days in some of the region’s most popular suburbs.

Market data from real estate software firm Reapit showed competition was already heating up with days on market falling in Queensland since interest rate cuts began in February.

The Reapit data revealed the Queensland average days on market was sitting at 49 in August 2024, 44 in February and 46 last month.

Anita Bocquee and Terry Brouwers have waited until spring to list their West Home for sale. Picture Lachie Millard

Across the state there were 78 suburbs with days on market sitting at or below 10 in August.

In SEQ, Sadliers Crossing in Ipswich recorded a zero days on market while Molendinar on the Gold Coast was sitting at three.

Deebing Heights, Lawnton and White Rock averaged four days on market, Marsden was at 4.5 and Glenore Grove, Northgate, Ooralea and West Woombye were at five.

Read the full story here.

NEW SOUTH WALES

Sydney is set to become an extreme “seller’s market” this spring as property investors and first-home buyers scramble for a dwindling supply of entry level homes.

Competition for home sales has already hit fever pitch in some areas, with an average of up to 150 serious buyers vying for every one home listed for sale, PropTrack figures showed.

Experts revealed the stage has now been set for a show down between property investors galvanised by lower interest rates and first-home buyers capitalising on government incentives.

Homeowners Kevin Fang and Ying Ying are selling their Lindfield home to upsize. Picture: Justin Lloyd.

They’re expected to be targeting the same properties, putting high pressure on home seekers wanting the most affordable properties,while sellers will be able to call the shots.

Properties in the more affordable Blacktown region have received the highest numbers of key inquiries in recent months, with data from PropTrack revealing that homes in Werrington and St Marys were Sydney’s most competitive.

In Werrington, houses received 150 “key inquiries” on average.

Read more here.

SOUTH AUSTRALIA

SA’s real estate agents are gearing up for a bumper Spring, reporting huge demand from househunters and strong numbers of properties in the pipeline.

Buoyed by a recent interest rate cut, the fact that home prices have been holding strong since the pandemic and continue to rise in many suburbs, and the fact that the state is still gripped by a chronic shortage of properties for sale, agents are tipping one of the biggest springs in years.

According to PropTrack data, there are 121 properties scheduled to go to auction across the state by the end of the weekend.

Lindsay and Rosemary Burgess are selling their Pooraka home which they have owned for 62 years. Picture: Tim Joy.

Next week there are even more, with 132 set to hit the auction block.

Kate Smith of Kate Smith property said she was gearing up for a big spring, and said buyers were more prepared than ever.

“People are prepared with their finance and good to go from the first open, ready to submit offers on the spot because they know that if they don’t get it there’s not a whole lot of other options at the moment,” she said.

Read the full story here.

The post Spring selling season set to sizzle as national home prices hit record highs appeared first on realestate.com.au.