From kpmg.com: House prices in Australia experienced a modest increase of 5.1% in 2024, but growth is expected to slow down further in 2025, with forecasts of 3.3% for houses and 4.6% for units.

Rental prices have also moderated, decreasing from a peak of 7.8% in March 2024 to 6.7% in September, while the labour market remains stable despite some increases in mortgage distress.

Continued high interest rates and uncertainty around the cash rate are influencing buyer caution, with anticipated rate cuts expected to boost homebuyer confidence in the latter half of 2025.