The past few years have been a rollercoaster ride for Australian property. Prices soared by +28.6 per cent over the pandemic boom before rising interest rates caused a downturn in 2022. A remarkable rebound that started in 2023 pushed home values back to record levels in 2024 and, following a short and shallow downturn around the New Year period, prices are back on the rise in 2025. 

Monthly price growth on the national level was given a significant boost thanks to February's interest rate cut and, with another cut landingin May, we could see even bigger growth around Australia. Clearly, there's a lot to consider for anybody thinking about listing their home.

Is it best to take advantage of the current conditions in what broadly remains a seller's market? Or is there value in waiting to see how things unfold over the coming months?

Whether you choose to sell isn’t just about current market conditions, but also the urgency of your own personal circumstances. For some of us, we needed to upsize into a bigger property yesterday, while for others, waiting for the market to rise might be a good incentive to release more capital before retirement. 

Let’s explore the current real estate climate, the pros and cons of waiting versus selling now, and what economists believe is on the horizon for the months ahead.

The current state of the market

According to CoreLogic data, Australia's median property price is still breaking new records after several months of solid gains.

CoreLogic Australian Home Value Index - April 2025

After slumping in 2024, Sydney and Melbourne are both on the rebound, bringing quarterly growth of 1.0 per cent thanks to stronger buyer activity after February's rate cut.

Perth, Brisbane and Adelaide all continue to reach new heights after a remarkable run, but the pace of growth has slowed markedly over the past six months. 

Hobart, Darwin and Canberra have been hovering around flat levels throughout most of 2024 and into 2025, though there have been some sudden uplifts recently, while regional markets are charging on, broadly outperforming their capital city counterparts. 

On an annual basis, houses have outperformed units, but that gap has eased as buyers seek out affordability. Units and cheaper houses are now delivering the strong performances as our population continues to swell and interest rates remain high.

Helpful resource: Get a suburb profile for any suburb in Australia

Australian property market forecast

Interest rates have been a key talking point since they began rising in May 2022 and, since the RBA began its latest rate-cutting cycle in February 2025, they're back in the daily headlines. 

The runaway inflation seen in recent years looks to have been all but conquered by high interest rates, driving inflation back within the RBA's target levels, leading the central bank to feel comfortable with cutting rates further in 2025. 

Following a second rate reduction for the year in May 2025, all four of the big banks are predicting further cuts later this year which should put upward pressure on property prices. 

Again looking to the big banks, their latest price forecasts show continued but slower growth than we saw throughout 2024.

Big banks' Australian property price forecast 2025

SQM Research's managing director, Louis Christopher, has a slightly more bullish view of the year ahead, predicting further interest rate cuts and national growth of between 6 and 10 per cent. 

"Now that we have entered into the interest rate cutting cycle, as per our scenarios released back in November, I now expect an about face turn around in the fortunes of the Sydney and Melbourne housing markets" he said.

"History reveals central bankers tend to do more than just one rate change … the RBA would certainly have scope to cut more as the year progresses, though I think they will be mindful of any resurgence in inflation."

KPMG sees 2025 being a year of growth for every capital city market, with units expected to outperform houses across the board. 

"The Residential Property Market Outlook finds unit (apartments and townhouses) prices will gain by 4.6 per cent in 2025 and then 5.5 per cent the following year, as they represent a more realistic route into the housing market, given the ongoing affordability crisis," they said.

What are the upsides in the current market? 

After the major ups and downs of our property markets between 2020 and 2024, things now look to be in a stable and strong position in 2025. 

The most obvious benefit for sellers is that the national median property price continues to hit new all-time highs. Over a five-year period since the start of the pandemic, the median Australian home value shot up nearly +40 per cent. 

In Brisbane, Perth and Adelaide, that number has soared beyond +68 per cent, meaning the vast majority of sellers who have held their property for even four years look set to make a very substantial profit. 

The ongoing issue of housing undersupply in the face of record levels of immigration is continuing to support property prices despite the high interest rate environment. 

PropTrack explained that "Given the current trajectory, it's unlikely that 1.2 million new homes will be built in the next five years. This means we’re likely to continue to see an undersupply of homes to buy and an undersupply of homes to rent."

More affordable properties, or those that may be considered entry-level, are also delivering above-average gains around the country which may help those looking to upgrade from a smaller house or unit. Now that the federal Labor government has been reelected, that effect could only increase. 

"A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation for stronger conditions across the lower value cohorts of the market," CoreLogic's Tim Lawless explained.

“The past three months has seen the lowest quartile either record a higher growth rate or smaller decline relative to the upper quartile or broad middle of the market across every capital city except Canberra.”

Ultimately, prices are at or near record levels in many markets across the country, and looking back over the past few years there has been an exceptional level of growth for home values.

See what houses are selling for in your area with a free property report of your local area.

Is it a buyer's market or a seller's market right now?

In a city like Perth, which has seen stunning rates of monthly price growth over the past two years, well below-average listings, strong buyer demand, and lightning-fast days on market, it's easy to apply the 'seller's market' label. 

In many other cases, though, the task isn't quite as simple, particularly when looking down to a suburb level. 

Assessing whether a market is balanced or favours either sellers or buyers requires looking at a range of data as well as getting a first-hand feel of what's happening on the ground. 

Some of those key data points include price movements, auction clearance rates, new and total listing levels, sales volumes, average days on market and vendor discounting rates.

But the data can only tell you so much. It's also worth heading along to nearby open homes and auctions to get a sense of what the competition is like on both the selling and buying sides.

Our simple guide to tracking market trends and data will walk you through everything you need to know to be able to read the market and make a smarter selling decision. 

Should I sell my house now or wait?

If you’re still on the fence about selling, we get it. It’s a huge decision that deserves all your careful consideration weighing up the advantages and disadvantages for either scenario. 

Even if the market feels uncertain, it’s important to remember that it’s all relative and the market doesn’t stop. There will always be properties being listed and buyers out there wanting to purchase a home. 

It's also crucial to recognise that conditions will vary from suburb to suburb, so it’s important to understand your own local market — and to do that, you really need to get granular. 

Whether your property is impacted by price gains or falls depends on many factors including location, property type, and whether your home falls into the higher or lower end of the market.

If you’re seriously considering selling your home, you need to do your research. As a first step, get an estimate of what your home might be worth in today's market. 

Speaking to a top local agent is also one of the best ways to get a thorough understanding of how buyers are behaving in your suburb, what kinds of results are still being achieved, and what the best strategy could be for you to still get that dream sale result. 

At the very least, it’s helpful to hear what properties are selling for, what demand is currently like for homes like yours, and to get a no-obligation appraisal of what your home might sell for in the current market. A top agent who knows your market like the back of their hand will be able to help you along the journey.