House prices continued to rise at a strong pace across the country in November, but there was a jump in the number of new property listings in some major cities and the prospect of an extended interest rate pause dampens the momentum of price growth.
The latest PropTrack Home Price Index shows that the national average home price rose 0.5% in November, up 8.7% from 12 months ago.
House prices have accelerated since the start of the year, with the RBA’s three rate cuts boosting borrowing power and lowering mortgage repayment costs.
The expansion of the federal government Home guarantee scheme In October, relatively low inventory levels, limited housing construction and population growth also contributed to house price growth.
REA Group senior economist Eleanor Creagh said that even with a dip in growth rates last month, house prices were still growing at a solid pace.
“We have seen home prices continue to rise at a rapid pace, with the monthly growth rate slowing somewhat in markets that see a large increase in shares for sale in November,” she said.
“This year’s series of rate cuts has increased borrowing capacity and improved sentiment, creating renewed momentum in the housing market. Continued population growth, increased activity from investors and upgraders, and of course the expanded home warranty scheme, are also driving demand.”
She said while the stock market has been quite tight for most of this year, there has recently been a big surge in stock for sale in Sydney and Melbourne.
“I think this contributes to the easing of the monthly growth we saw in both markets in November.”
Average house prices in Melbourne and Sydney rose slightly more slowly in November than in previous months, by 0.2% and 0.4% respectively.
It follows a 29.5% month-on-month increase in new property listings in Melbourne in October, and a 20.1% increase in new property listings in Sydney.
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That said, the total number of homes for sale in both major cities was still lower than at the same time last year, reflecting how little stock there is on the market.
Adelaide shows the way
Adelaide saw the strongest month-on-month house price growth in the country in November, rising 0.9% over the month.
The capital’s average house price was 12.2% higher than in the same period last year.
Ray White South Australia and Northern Territory CEO Matthew Lindblom said population growth and other factors were driving house price growth in Adelaide.
“Adelaide property price growth is driven by a strong South Australian economy, low unemployment, government investment in infrastructure and general market confidence,” he said.
“Adelaide has also historically been a strong market for first home buyers, and the current Federal Government incentives, designed to help young people enter the property market, are also having an upward impact on home values.”
Ray White South Australia and Northern Territory CEO Matthew Lindblom said Adelaide has historically been a strong market for first home buyers. Image: supplied
Mr Lindblom said the city’s population has reached a level where the circular economy is strong, giving people more security about living and investing in the city.
“Adelaide has always had a good geographical location due to its relative proximity to Sydney and Melbourne,” he said.
“It took a while before this was recognized, but it has now really been discovered.
“Additionally, with part of the workforce permanently working from home, Adelaide remains an attractive place for people to migrate to, thanks to its beaches, lower cost of living, strong education options and overall lifestyle.”
Perth followed Adelaide with the second strongest house price growth in Australia in November, with the city’s average house price rising 0.89% over the month.
Adelaide’s average house price grew by 0.9% in November and was 12.2% higher than the same period last year. Photo: Getty
Brisbane (0.64%), Canberra (0.56%), Darwin (0.25%) and Hobart (0.16%) also posted month-on-month gains in November.
All regional markets except the regional Northern Territory (-0.1%) also grew in November.
Australia’s combined regional property markets outperformed the capital cities last month, rising 0.6% and 0.48% respectively.
Regional NSW (0.72%) led the way out of the country’s regional markets in November, followed by regional Queensland (0.59%) and rural Tasmania (0.58%).
What next for house prices?
Home prices are expected to continue rising next year, but the prospect of an extended pause in interest rates and other factors will impact the pace of growth.
“Housing prices will continue to rise, but momentum is dampening due to the extended interest rate pause, while all those other factors are still supporting housing demand,” Creagh said.
REA Group senior economist Eleanor Creagh said house prices continued to rise at a rapid pace, with some easing in markets such as Melbourne and Sydney where there has been a big rise in share prices. Image: supplied
Last week, the last Consumer price index data The Australian Bureau of Statistics showed inflation rose 3.8% in the year to October, up from 3.6% the month before.
Higher-than-expected inflation figures – above the Reserve Bank of Australia’s 2-3% inflation target – have largely dashed hopes for further rate cuts in the near term.
Ms Creagh said Australia was likely to see an extended interest rate pause.
“The Reserve Bank will want the core trend of disinflation to recover before cutting rates again, and underlying inflation appears to be slightly stronger than expected,” she said.
“But if we look at this easing cycle as a whole, expectations were for one or two more rate cuts and we’ve already seen three, so we’ve already seen the bulk of the easing and we’ve seen that reflected in the rise in house prices over the last year.
“Rate cuts at this point are certainly supporting house price growth and the acceleration in price growth we’ve seen in 2025, but there are other factors at play, including market shares, rental market conditions, investor activity, new housing and population growth.
“A longer interest rate pause could dampen momentum, but we will still see prices continue to rise, albeit at a slightly slower pace.”
Other factors likely to influence house prices include housing affordability, the Help to Buy scheme and the banking regulator’s recent decision to tighten lending rules next year.
Low- and middle-income earners will be able to get more help buying their first home from Friday, when the federal government finally rolls out its long-awaited measures. Help with buying a stock program.
Meanwhile, first-home buyers may also face tighter lending conditions next year, with new lending limits for highly indebted borrowers potentially leading to a flurry of activity in the run-up to February, when the new measures will come into effect.
Housing affordability will continue to put pressure on buyers. New PropTrack research released last week shows that despite a slight improvement, housing affordability in Australia has remained at its worst level on record. Experts predict that affordability will deteriorate further in 2026.
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