House Prices Expected to Rise as First Home Buyer Scheme Expands

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Home prices are on the move again — and experts say things could get even hotter as more first-home buyers jump into the market with tiny deposits.

According to property research group Cotality, national dwelling values rose 0.8% in September — the strongest monthly lift since October last year. That makes it eight months in a row of gains. Over the September quarter, prices climbed 2.2%, adding about $18,000 to the cost of the average home. The national median value now sits at a hefty $857,280.

Darwin was the standout performer, with prices up 1.7% for the month. Perth, Brisbane, Adelaide, Sydney, Canberra, Melbourne, and Hobart also saw growth, though not as strong.

Cotality’s head of research, Eliza Owen, says the pace of growth is really picking up as the spring selling season kicks in. “We were seeing about half a per cent growth earlier this year. Now that increase is ramping up,” she said.

PropTrack’s data also backs it up, showing prices rose 0.5% nationally in September.

So what’s behind it? A mix of factors: expectations of interest rate cuts in 2025, real wage growth giving people more borrowing power, and not enough homes on the market to meet demand. Add in more confidence among buyers and the government’s expanded First Home Guarantee, and it’s no surprise prices are climbing.

More updates to come on AusNewsLanka.