Momentum builds as home prices hit new highs

Australia’s housing market continues to defy expectations, with national home prices rising for the tenth straight month in October.

According to PropTrack’s latest Home Price Index, prices climbed another 0.6% last month, pushing values 7.5% higher than a year ago and setting a new national record.

Buyer confidence is returning, borrowing power is improving, and the spring selling season is delivering real traction. For homebuyers and investors in Sydney, Melbourne, and Brisbane, this is a market worth watching closely.

Brisbane led the monthly gains among the east coast capitals, up 0.9%, while Sydney and Melbourne also posted solid growth of 0.6% and 0.5% respectively. All three cities are now sitting at or near record price levels, with Brisbane and Sydney also among the top performers over the past year.

What’s driving this upswing? A few key factors are at play. Lower interest rates have boosted borrowing capacity, while tight supply continues to support prices. Sentiment has clearly shifted – buyers are back, and competition is heating up.

Interestingly, house and unit prices are now rising at a similar pace, with units even slightly ahead in October (+0.7% vs +0.6% for houses). That’s a trend we’re watching closely at Metropole, especially in inner-urban markets where affordability and lifestyle appeal are drawing renewed interest.

While affordability remains a challenge in some segments, this isn’t a runaway boom. Annual growth is strong but still sits below the frenzied 20% to 30% surges of past cycles. That’s a good thing is that it suggests a more sustainable, broad-based recovery.

For investors, the message is clear – the market is moving but not overheated. With stock levels still constrained and demand building, well-located properties in tightly held suburbs are likely to outperform.

Whether you’re looking to upgrade, invest, or enter the market for the first time, now is the time to act with clarity and confidence. Let’s make the most of this momentum because smart decisions today can set you up for long-term success.