Housing growth eases as affordability and rates loom large Image

Housing growth eases as affordability and rates loom large

May 20, 2025

Cotality National Home Value Index Report

 

National home values rose 1.0% in November, marking the third consecutive month of strong growth, though the pace is easing from October’s 1.1% gain.

 

Mid-sized capitals are outperforming, with Perth leading at 2.4% growth, while Sydney and Melbourne lag at 0.5% and 0.3% amid affordability constraints.

 

Affordability and rate pressures loom, as record-high dwelling value-to-income ratios and expectations of prolonged rate holds signal headwinds for housing sentiment and credit access.

 

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Reference Cotality