Melbourne's median house price was forecast to reach around $1.11 million by mid-2025, with some reports showing it hitting nearly $1 million by late 2025, driven by strong demand, limited supply, and improving affordability, though actual figures varied slightly by source and month. By late 2025, forecasts suggested prices could continue climbing, with figures like ~$978,000 reported in November, heading towards potential record highs in 2026.
Melbourne has posted consecutive months of home price growth in the second half of 2025. This represents a notable turnaround as Melbourne property prices fell in most months of 2024. Melbourne continues to rank as one of Australia's most desirable cities for property investors, and for good reason.
The Indian government continues to strengthen its support for affordable housing in 2025, making it an opportune year for homebuyers. Key programmes like Pradhan Mantri Awas Yojana (PMAY) remain active, alongside state-level incentives that reduce the cost of purchasing a home.
The Domain House Price Report for the June 2025 quarter has been released with Melbourne median house price increasing by 2.3% ($23,585) to $1,063,719. Units are also performing strongly with a quarterly increase of 2.7% to $573,600.
Whether to sell your Australian house now or wait depends on your goals, but strong demand, low stock, and rising prices in many areas suggest a good time to sell, though some forecast a slowdown or shift in early 2025 before potential later growth driven by lower rates, making it a nuanced decision favoring acting sooner if upgrading, or waiting to capitalize on potential spring surges if timing allows, according to 2025 real estate analysis from OpenAgent and other sources, REMAX Success, and Real Estate.
Are Australian house prices expected to fall in 2025/2026? Most forecasts suggest flat to modest growth in 2025, with small declines possible in 2026 if the economy weakens.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
J.P. Morgan Research expects house prices to rise by 3% overall in 2025. The higher-for-longer interest rate backdrop is here to stay, with mortgage rates expected to ease only slightly to 6.7% by the year end.
Barrenjoey expects home values to rise 2.8 per cent nationally in 2026, with Sydney prices to rise 1.9 per cent and Melbourne's 1.8 per cent.
No, property values don't universally double every 10 years; it's a common myth, though some areas and periods see such rapid growth, while national data shows it often takes longer, around 15+ years, with significant variation by location and market conditions. While historically this rule held true for certain decades, recent data indicates it's more of a generalized guideline than a guarantee, with some markets doubling quickly and others much more slowly, or even declining.
More motivated sellers and buyers – Summer-autumn 2025 sees a balanced market. Mortgage rate dips – Rates are predicted to soften slightly. Seasonal opportunity – August to October is prime time for moving. Rising rents – Buying may now be more cost-effective in the long term.
What is the 5/20/30/40 rule? The 5/20/30/40 rule keeps your home affordable by setting four clear limits:5x annual income: Home price shouldn't exceed 5x your yearly income. 20-year loan: Keep loan tenure under 20 years to save on interest. 30% EMI: Don't spend more than 30% of income on EMIs.
Generally, home prices are lowest in January because demand is low, inventory is low and fewer buyers are looking for homes. While January might be the best month to get the lowest price on a home, you pick from a smaller selection of homes.
Is property still a good investment in 2025? It can be — but it's more important than ever to run the numbers carefully. With high prices and rising interest rates, many properties are now cash flow negative.
To buy a $650,000 house in Australia, you generally need a gross annual household income between $100,000 to $140,000, with figures varying significantly by location and lender criteria, requiring a strong deposit (around $130,000 for 20%) and managing loan repayments to not exceed 30% of your income to avoid mortgage stress, often necessitating a joint income or substantial savings, as highlighted by financial experts and data from sources like Fundd, Finder, and Real Estate.
Melbourne's overall outlook for 2025–2027 is very optimistic. After a mild dip, property values are rebounding, and experts predict Melbourne will lead the nation in price growth over the next two year.
Suburbs set for a boom in 2025, particularly in Australia, are driven by affordability, lifestyle appeal (beaches, cafes), infrastructure (new transport links), and demographic shifts, with hotspots identified in Perth's northern coastal areas (Alkimos, Yanchep), Regional Queensland (Toowoomba), Melbourne's outer areas (Werribee, Keilor East), and Brisbane's growth zones (Springwood, Gold Coast's Coomera), as people seek value and better living environments outside major city centers.
Undervalued suburbs in Melbourne often offer strong potential due to infrastructure, proximity to growth areas, or lagging price growth compared to neighbors, with current examples including Box Hill North, St Kilda East, Noble Park, Sunshine, Frankston, and Werribee, offering affordability, transport links, or gentrification potential despite lower current price growth or higher rents. Other areas noted for value include Doveton, Hastings, St Albans, and parts of the inner west like Yarraville/Footscray, benefiting from development or relative affordability.
To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.
On a $100k salary, you might borrow roughly $400,000 to over $600,000, depending heavily on existing debts, living expenses, deposit size, interest rates, and if you're borrowing alone or with a partner, with calculators suggesting amounts like $390k-$577k as a baseline, but always use an online calculator for personalized results. Lenders use factors like your income, spending, loan terms, and stability to determine your true capacity, often applying rules like the 28/36 rule (max 28% income on housing, 36% on total debt).
A $500k mortgage monthly payment varies significantly with interest rate and loan term, but expect roughly $2,300 to over $3,100+ for a 30-year loan at typical rates (e.g., 5.4% to 7.1%), with shorter terms (like 15 years) or lower rates (like 2.5%) yielding payments in the $3,000s down to the $3,200s. The exact payment depends on your specific interest rate (e.g., 7.1% means ~$3,360/mo; 5.4% means ~$2,820/mo) and loan duration.
The sixteenth season of the series premiered on 20 March 2024. The seventeenth season of the series premiered on 5 March 2025. In September 2025, the series was renewed for an eighteenth season along a six part special, Inside Selling Houses Australia: New Beginnings.
On average, U.S. adults say the best age to purchase a home is 28.8. Those who are homeowners themselves recommend a slightly younger age (28.4) compared with renters (30.0). For many Americans, though, buying a home comes later in adulthood than the age our survey respondents say is ideal.
Tips for negotiating a house purchase