Powered by a revolutionary government policy to support first homebuyers, Australia’s sale prices are now growing faster than at any time in the last two years.
The moment the Government released its Home Guarantee Scheme (HGS) – a policy guaranteeing 15% of a 20% deposit so first-time buyers avoid Lenders Mortgage Insurance – the national market responded.
Sale values surged 1.1% in October, which is the strongest month-on-month value growth since July 2023. It comes on the back of nine consecutive months of price growth of between 0.6-0.8%.
Industry researcher Cotality confirmed the HGS has created price pressure at the entry and mid-level tiers of the market.
Its data found month-on-month deal values were up 1.2% in the lower quartile, while the mid-level registered 1.4% growth.
The national, 12-month annual growth rate now stands at 6.1%, and it is likely to increase in the coming months.
Adding to this good news for sellers, Cotality reports the volume of sales is tracking at 3.1% above the five-year average.
The shortage of supply also continues to add pressure to prices. The number of advertised homes for sale over the four-week period to late October was 18% below the five-year average.
The market’s revitalisation can be traced back to last February when the Reserve Bank of Australia (RBA) made the first of its three rate cuts this year.
Cotality’s research director, Tim Lawless, said: “Before the February rate cut, housing conditions were losing momentum, even recording flat to falling values through late 2024 and January 2025.
“The first rate cut in February marked a clear turning point with home values moving through a positive inflection across most regions and gathering steam since then.”
Every state capital and country region registered value growth in October.
Perth led the way with deal values recording a 1.9% rise. At the other end of the spectrum, Hobart saw values move 0.3% higher, according to Cotality data.
Metropolitan houses and units have now increased 5.9% in value since last February, or approximately $53,000.