May 2025 Real Estate Market Report

Welcome to your May 2025 market update, brought to you by @realty, your trusted partner in real estate. 

Australian Home Values Hit Record Highs in April

Growth slows slightly, but momentum remains strong amid rate cut expectations

Australian home values reached new record highs in April 2025, with prices rising across every capital city. Although the pace of growth eased slightly compared to the first quarter of the year, market conditions remain positive—and with further interest rate cuts expected later this year, price growth may regain momentum.

Key Insights from April for May 2025 Real Estate:

- National median home price rose by 0.2% to $805,000, setting a new record.

- Regional markets led the way, with a combined monthly growth of 0.3%.

- All capital cities saw price increases, pushing capital city values to fresh peaks.

- Over the past 12 months, capital city prices are up 3.35%, while regional areas have grown 4.6%.

Capital City Performance:

- Adelaide posted the highest growth in April (+0.3%) and leads all capitals year-on-year with a 10.8% increase, overtaking Perth.

- Melbourne and Canberra followed with +0.25% and +0.2% growth, respectively.

- Sydney, Perth, and Hobart each posted a +0.1% rise.

- Darwin gained 0.15% in April, with prices up 0.8% year-on-year.

Outlook for the Remainder of 2025

Interest rates remain the biggest driver to watch. While cuts were already anticipated this year, growing concerns around the global economy—especially from U.S. tariff impacts—have increased expectations for further rate reductions. This could further fuel demand and lift home prices through the second half of 2025.

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