BAF NEWS

November 2025 Australian home prices: headline results

November 2025 Australian home prices continued to advance. Cotality reported a 1.0% monthly rise after October’s 1.1% gain, lifting the median to about A$888,941. Perth led, while Sydney and Melbourne posted modest increases, according to available reports from Cotality and wire services.

“Prices increased 1% in November from October to a median value of A$888,941,” one report noted. Another added that “Cotality’s monthly Home Value Index increased 1 per cent nationally in November.” These headline figures frame the next question: how durable is the momentum?

Ripple effects: Australia’s housing pulse feeds into regional capital flows and rate expectations. Global investors will watch whether tight supply and firm demand keep supporting assets beyond housing.

Price growth by city and supply dynamics

Perth did the heavy lifting again. Reports pointed to prices in Perth jumping 2.4% in the month, while listings there sat more than 40% below average. That scarcity helped the mid-sized capitals housing market outpace Sydney and Melbourne.

Moreover, Perth house prices November 2025 benefited from unusually low stock. In turn, that imbalance sustained outsized monthly gains. The mid-sized capitals housing market now sets the tone for 2026 pricing power.

In the broader European context, investors tracking commodity-linked economies often map Australia’s supply shocks into broader risk appetite. If tight listings persist, global housing investors could stay constructive on rare, supply-constrained pockets.

October–November timeline and early 2026 signals

October’s 1.1% increase preceded November’s 1.0% climb, extending a solid streak. One outlet also noted this was at least the third straight month of 1%+ gains. The cotality home value index therefore shows persistent momentum across spring.

Forecasters surveyed in late November projected further increases through 2025–26, while 2025 RBA cuts totaling 75 bps, to a 3.60% cash rate, boosted buyer interest. The cotality home value index will be the primary gauge of whether that impulse endures into the new year. Consequently, November 2025 Australian home prices may not be the cycle peak.

Affordability at record strain

Affordability pressures worsened alongside the gains. Cotality flagged “a record high national dwelling value to household income ratio,” while ABC reported housing affordability had “never been worse” in Australia. In one survey, “the median value of a home is now nearly eight times annual income.”

Therefore, australia housing affordability 2025 has entered a new phase. With incomes lagging, australia housing affordability 2025 is likely to remain a central policy and market variable.

What could cap further gains

Yet constraints are building. As one analyst put it, “With housing affordability already stretched and worsening, it stands to reason that fewer borrowers will be able to access credit.” Another outlet warned: “Record-high values may see affordability constraints start to put a ceiling on price growth.” Serviceability buffers and tighter assessments compound the pressure.

If these headwinds persist, November 2025 Australian home prices may cool at the margin even with demand still firm. But current listings remain a decisive swing factor.

Analyst outlook: prices seen rising through 2026

A late-November poll expected prices to keep climbing in 2025–26, with momentum potentially stronger than previously thought. Notably, only two of 11 analysts expected purchasing conditions to improve for first-time buyers over the next year. That implies first-home buyer affordability australia could deteriorate further.

If that call holds, first-home buyer affordability australia will likely hinge on income growth, borrowing costs, and targeted policy. Meanwhile, November 2025 Australian home prices leave little room for error if rates or unemployment surprise higher.

What the November 2025 Australian home prices mean for buyers and sellers

Buyers face a tougher equation. Credit hurdles and rising prices are squeezing choice sets, particularly outside the mid-sized capitals housing market leaders. Perth remains the standout: Perth house prices November 2025 underscore how low stock translates into bargaining power.

Sellers, especially in Perth and other supply-constrained cities, retain pricing leverage. Nevertheless, stretched budgets could thin auction depth at the margin.

What’s next for November 2025 Australian home prices

Watch three levers. First, RBA guidance and labor-market data, which feed serviceability assessments. Second, listing trends in Perth and other mid-sized capitals. Third, Cotality’s next monthly read for signs of momentum or fatigue.

If tight supply holds, prices firm; if listings normalise, price growth cools. If X holds, Y follows, so price paths will hinge on how quickly stock returns.

In the broader European context, central-bank watchers will parse Australia’s experience for lessons on the affordability–rate nexus. Ripple effects: if rate cuts reignite demand faster than supply heals, European markets could see similar affordability flashpoints.