Australian home price average tops $1 million

Property values nationally have passed a major milestone with the average home price pushing through the $1 million mark for the first time ever. Have you been putting off buying? If so, here’s how to get the ball rolling.

Despite a cost-of-living crunch and several years of high interest rates, the Australian property market continues to break records.

New figures from the Australian Bureau of Statistics (ABS) show home prices recently passed a key benchmark.

The average home price nationally is now $1,002,500 – the first time it has topped $1 million.

Here’s what it means for home buyers.

Average home prices vary by location

According to the ABS, a 0.7% rise in home prices nationally in the March 2025 quarter helped push the average price over the $1 million threshold.

National numbers don’t always show the full picture though, and average home prices continue to vary widely between states.

New South Wales has Australia’s highest average price of $1,245,900.

That’s followed by Queensland ($944,700) and the ACT ($941,300).

There’s not much separating average home prices in Victoria ($899,700), Western Australia ($874,200) and South Australia ($861,900).

At the other end of the spectrum, Tasmania ($670,200) and the Northern Territory ($517,700) continue to be the more affordable states for housing.

How are home prices likely to move from here?

While the ABS data only extends to the end of March 2025, figures from CoreLogic show home prices have continued to climb higher.

We’re even seeing a recovery in property values in areas such as Darwin, Hobart and Canberra, where price growth has been comparatively low in recent times.

One of the key drivers for all this growth has been lower interest rates, which PropTrack says have improved market sentiment, boosted borrowing power and buoyed buyer confidence.

Why buying now could be a good time

If you’re thinking of buying a home, chances are you’re wondering “will home prices keep rising?”

While it’s impossible to accurately predict the future, the general view appears to be that home prices are set to head higher.

CoreLogic says the recent May rate cut is likely to have a “positive influence on housing values in June and through the rest of the year”.

Meanwhile, the outlook from the team at PropTrack is that we are likely to see further price growth through the remainder of 2025 based on tight housing supply, targeted buyer incentives (such as first home buyer schemes) and population growth.

Talk to us to get the ball rolling on your purchase plans

They say the right time to buy a home is when you’re ready.

But how do you really know when that is?

If you’re interested in finding out, talk to us to understand your borrowing power, and get the ball rolling on a home loan that matches your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How you could boost your home’s value by $118,000 (and save on bills)

With winter temps falling, chances are your power bills will rise. This helps explain why buyers are willing to pay 14% extra for energy-efficient homes on average. Here’s how to give your place a ‘green premium’.

There’s a lot to love about winter. Cosy nights in, warming mugs of hot chocolate, and maybe a trip to the snow.

The downside is bigger power bills.

With energy costs set to climb higher across many parts of the country, it’s not surprising that home buyers are increasingly looking for properties that deliver savings on power bills.

And new research by Domain shows buyers are willing to pay 14.5% more for energy-efficient houses and 12% more for energy-efficient apartments on average – that equates to about $118,000 and $75,000 more, respectively.

Here’s how to give your place an energy-efficient makeover.

Our homes can be energy guzzlers

According to Domain’s latest Sustainability in Property report, Australian homes consume around one-quarter (24%) of the nation’s electricity.

It’s not because we forget to turn the lights off.

Experts say most Aussie homes have “poor thermal performance”: our homes swelter in summer and shiver in winter.

So, we turn to energy-hungry appliances to stay comfortable.

Energy-efficient homes do the opposite. They reduce power consumption to save on energy bills, and enhance livability.

Yet one-in-four Australians currently live in a home with zero energy-efficient features.

What buyers want and what adds value

Solar power, passive design elements and double-glazed windows consistently rank among the most sought-after features, delivering both lifestyle advantages and lower household running costs, according to Domain.

North-facing homes also command a premium price tag as they provide maximum exposure to natural light and warmth during cooler months, and only 15% of Australian homes have a north-facing orientation.

However, energy-efficient home improvements don’t have to be complex (or impossible, for those of you who don’t have a north-facing house).

Something as simple as roof and ceiling insulation can cut heating and cooling costs by 45%.

Bigger investments, such as installing rooftop solar, can be more affordable with the help of government grants, rebates and subsidies.

And from 1 July 2025 the new Cheaper Home Batteries Program can reduce the cost of installing solar batteries by about 30%.

Talk to us to know what’s available

Whatever eco-features you consider, there are various ways you could fund your green improvements.

A home loan top-up with your existing lender could help free up additional funds.

Some lenders have ‘green loans’ specifically designed to fund energy-efficient improvements.

You could even save on interest by refinancing to a lower-rate home loan.

It can be a way to put your home equity to work while also increasing your home’s liveability and potentially its value.

So get in touch for help funding a toastier winter and more pleasant summer.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Plot twist: home owners keep repayments on hold as rates fall

Despite two much-awaited rate cuts this year, plenty of Australian households are keeping their mortgage repayments on hold – and it could see them save in long-term interest costs.

2025 is shaping up to be a much better year for borrowers than 2024!

Already, we’ve chalked up two rate cuts, and some experts are predicting there are more to come.

It’s an encouraging sign that the worst of the cost-of-living crunch may be behind us.

But there’s an unexpected twist.

Instead of taking up the short-term savings offered by recent rate cuts, 86% of variable rate borrowers with one particular lender have kept their minimum monthly home loan repayment amount at the pre-rate cut level.

It’s a simple step that could save on loan interest and help home owners pay off their mortgage sooner.

Monthly savings of $160-plus

The recent rate cuts may have released the pressure valve for many home owners.

For the average $500,000 home loan, February’s 0.25% rate cut could have lowered monthly repayments by up to $80.

The second rate cut in May could have trimmed a further $80 from monthly repayments.

That’s a total of up to $160 wiped off repayments in the space of just four months.

Yet it seems few home owners are reaching out to their lender to reduce their minimum monthly home loan repayment amount.

Really? Why’s that?

The Commonwealth Bank, which accounts for around one in four Australian home loans, says only one in seven (14%) of its variable rate home loan customers reduced their loan repayments following the February rate cut.

The majority simply stayed with their existing repayment amount.

Now, it’s important to note here that the Commonwealth Bank and many other lenders don’t automatically reduce your minimum monthly repayments when they follow the RBA’s lead and cut the interest rate on your home loan.

Instead, they may maintain your repayment amount at the old level.

This means that more of your money goes towards paying off the principal (rather than the interest) each month.

That said, you can ask your lender to reduce your repayment amount in line with their cuts.

Or you may find your particular lender has already automatically reduced your minimum monthly repayment in line with rate cuts.

It’s worth double-checking what your lender has done, and if in doubt, get in touch with us.

How much could you save?

If your finances can handle it, leaving your minimum monthly repayment amount unchanged when rates head south can be one way to help pay more off your loan each month.

To see just how much you could save on interest over the long term, we crunched the numbers for a $500,000 home loan assuming today’s average variable rate of 6.42%, and a 25-year term.

By sticking with the same, pre-rate cut repayments for the remainder of the loan (remember, that’s the equivalent of paying $160 extra each month), a borrower could cut over $61,000 from their long-term interest bill.

Better still, it could mean the home loan is fully paid off 2.5 years ahead of schedule.

And if rates fall further, the time and cost savings could be higher.

Call us to find out how much you could save

If you can afford it, it could be worth thinking about leaving your home loan repayment amount on hold, even if your lender cuts their rates.

Of course the savings you could enjoy with this strategy depends on the size of your loan and the current rate you’re paying.

To get more clarity on your home loan, give us a call.

We’ll explain the rate you’re paying, and do the sums for your loan to let you know how much you could save by leaving all, or even part, of your repayments unchanged.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

RBA cuts the cash rate for the second time this year to 3.85%

Australian borrowers have received another reprieve with the Reserve Bank of Australia (RBA) today cutting the cash rate by 25 basis points to 3.85%. How much could this decrease your monthly mortgage repayments?

This is the second cash rate cut in 2025, as the RBA attempts to ease cost-of-living pressures on Australian families.

RBA Governor Michele Bullock said in a statement that the Board was satisfied that the risks to inflation had recently become more balanced.

“With inflation expected to remain around target, the Board therefore judged that an easing in monetary policy at this meeting was appropriate,” Governor Bullock said.

How much might your mortgage repayments now decrease?

Unless you’re on a fixed-rate mortgage, hopefully your bank will soon follow the RBA’s lead and decrease the interest rate on your variable home loan.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point rate cut means your monthly repayments could decrease by about $77 a month.

That would put $924 a year back into your household budget.

If you have a $750,000 loan, your monthly repayments will likely decrease by about $115 a month – or $1380 per year.

Meanwhile, a $1 million loan could decrease by about $154 a month – or $1848 a year.

This all assumes that your lender automatically passes on the full 25 basis point cut to your home loan.

Another thing to consider is that not all lenders automatically reduce variable home loan repayment amounts in line with rate cuts.

Some lenders simply maintain your repayment amount at the old level. It’s just that more of your money goes towards paying off the principal (rather than the interest) each month. But you can ask them to reduce your repayments in line with their cuts.

To find out what your lender is doing with your loan, get in touch with us in a few days once the dust has settled.

Feeling the strain of your mortgage? Let’s talk

Even with this latest rate cut, many Australian households are still grappling with living costs and interest rates that are higher than when they first took out their home loan.

If it’s been a while since your last home loan review, now could be a good time to check in. You might be able to improve your situation – and we’re here to help you explore your options.

This could include renegotiating with your current lender, refinancing to another lender, or debt consolidation.

Every household is unique, and we’re committed to helping you find a solution that fits your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Fact or fiction: do property values double every 10 years?

It’s a common belief that real estate values double every decade. But is this true? New research reveals how much home values have increased over the past ten years.

It’s no surprise that something as big as Australia’s $11 trillion housing market has generated its fair share of myths and misconceptions.

Chances are you’ve come across a few yourself – maybe along the lines of ‘great houses sell themselves’, ‘the listing price is non-negotiable’, or ‘you need a 20% deposit to buy a home’.

One comment we often hear wheeled out at social gatherings is that property prices double every 10 years.

But how accurate is this? Here’s the latest research.

How has the property market performed recently?

Looking back over the past year, home values have climbed 3.2% nationally to $825,000, adding about $25,000 in value to the average Aussie home.

Stretching the lens out further, CoreLogic says that in the past five years, property prices have increased 39.1% – an upswing that’s added around $230,000 to Australia’s median home value.

So do values double every 10 years?

It turns out that over the decade to April 2025, home values have, broadly speaking, fallen short of doubling.

Data from CoreLogic shows that on a national basis, property prices have climbed 67.3% in the past 10 years (certainly nothing to sneeze at, though!).

Here are the gains each capital city has made over the past decade:

– Adelaide: 93.6% (the capital city closest to doubling)
– Brisbane: 91.2%
– Hobart: 86.4%
– Sydney: 61.6%
– Canberra: 60.7%
– Perth: 55.6%
– Melbourne: 43.8%

Only one city – Darwin – saw a decline in values (-0.5%) over the past 10 years.

Bear in mind that in some cities with average higher property prices, such as Sydney and Melbourne, some home owners may have pocketed bigger gains in dollar terms as a result of price rises over time, despite the smaller percentage gains.

Time to dispel another myth

The same CoreLogic data seemingly busts another myth – the one about home values across our major cities being more likely to notch up bigger gains than regional properties.

Since 2015, home prices have come closest to doubling in country New South Wales (up 97.5%), regional Tasmania (96.1% higher) and regional Queensland (up 91.5%).

All told, property prices across the nation’s combined regional markets are 87.5% higher than they were 10 years ago, compared to 61.7% gains across our combined capital cities.

Once again, though, keep in mind that capital city properties ($905,000 median value) are often worth more than regional properties ($673,000 median value), and therefore could realise higher gains in dollar terms, despite smaller percentage gains.

The bottom line

Generalisations may make for great barbecue conversations.

But when it comes to major financial commitments such as buying a home, it pays to stick to the facts.

Many locations and individual properties haven’t – and quite possibly never will – double in value every ten years.

That doesn’t mean that your home won’t enjoy significant gains in value over time.

Add in a home loan that’s right for your needs, and home ownership can make a valuable difference to your personal wealth.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.