Australian home values saw a sharp lift in August. National property prices climbed 0.7% for the month, the strongest increase since May 2024, pushing the median home price to about $848,858. This rise was driven by strong buyer demand colliding with low supply. Borrowing capacity is higher (thanks to RBA rate cuts) and real wages are at five‑year highs, boosting buyer confidence. At the same time, many owners are holding off on listing their homes. Advertised listings are about 20% below normal levels, so each good property draws multiple buyers.
Overall, this means a very seller-friendly market. The “shortage of stock” is keeping competition fierce. As one Sydney agent put it, “There are more buyers with less to choose from, so that’s what creates the competition.”. In practice, every new listing draws many offers. For buyers, that means you may need to move quickly and carefully.
Why Are Prices Rising?
The basic cause is simple supply and demand. Lower interest rates (with more cuts likely ahead) give buyers more borrowing power, and wages are rising – a rare win for hopeful homeowners. But with only about 120,000 homes listed for sale versus a 5-year average of 150,000, there just aren’t enough houses available. That mismatch of strong demand and tight supply is literally pushing values up. CoreLogic’s research director notes it’s a “clear mismatch between available supply and demonstrated demand, placing upwards pressure on housing values.” In short, it’s a classic seller’s market right now.
What This Means for Buyers
For anyone looking to buy, the key takeaway is that competition is high. More buyers are chasing fewer homes, so it’s easy to get caught in bidding wars. Here are some focus points from a buyer’s agent perspective:
- Competition Risk. Active buyers are facing fierce competition. With limited stock nationwide, you can expect several people to bid on quality listings. As Sydney agent Tina O’Connor says, “more buyers with less to choose from”. This means going in well-prepared (financing sorted, inspectors lined up) or you may lose out or overpay.
- Timing Advantage. Acting before prices run even higher can save you money. Given that momentum is building – and more rate cuts are possible – prices could accelerate. In Brisbane, which led the gains (+1.2% in August), and Sydney (+0.8%), growth might continue. Our advice: if you’re in the market, don’t delay unnecessarily. Work with a buyer’s agent early so you’re ready when a good property appears.
- Choosing Locations. Not all cities (or suburbs) are moving at the same speed. Brisbane saw the biggest rise (1.2% in August), reflecting a hot market. Sydney had solid growth too and remains Australia’s priciest city (median around $1.22m). Melbourne’s increase was slower (0.3%), so prices there have lagged. First-home buyers should be extra careful for buying their First Home in Australia and choosing an area. If you’re looking at Brisbane or Sydney, see our guides on Brisbane and Sydney Buyer’s Agents for local insights.
- Long-Term Strategy. In a rising market, expert advice is vital. You want to avoid overpaying. For example, don’t skip steps like getting pre‑approval or inspecting properly. You should take help because a professional can stop you from making buying mistakes while setting a budget, and not let emotions rule. A professional buyer’s agent can help you research suburbs, vet listings, and negotiate effectively, keeping your plan on track in this competitive environment.
- Investor Perspective. It is clearly an investor’s opportunity when demand is high and supply is tight in the market. Because this time, rents can rise and property values tend to lift. But it’s also easy to get caught up in hype. If you’re buying an investment, do your homework. Focus on fundamentals like rental yield and long-term growth potential.
Overall, the market is moving up. Buyers should be proactive: have finances ready, know what they want, and consider getting professional support.
How a Buyer’s Agent Can Help
As buyer’s agents, we advise clients on every step. We save you time by scouring the market and even tapping into off‑market deals. We also negotiate to help keep your price reasonable. If this sounds like too much to manage alone, remember that our role is to make buying smoother. Key2Dreamz knows the suburbs, market data, and how to handle bidding.Ready to make a confident move? As a buyer’s agent, Key2Dreamz helps clients craft personalised buying plans and navigate the market with clarity and confidence. Contact Key2Dreamz today to get started. To discuss your property goals, call us directly on +61 439 260 917.