by Neil Jenman
Reading time: Apx 6 minutes
Keeping up to date with the Sydney real estate market trends is essential for anyone looking to buy, sell, invest or rent to make well informed decisions. Knowing when to sell, buy or wait can mean the difference of tens of thousands of dollars.
The average price of a home in Sydney has just rolled back over the $1.2m mark for the first time since September 2024 showing that while property prices in Sydney have cooled compared to the prior 5 years, they are back on the mend and have nearly wiped out the difference from a few months of negative growth.
The prices of homes in all major capital cities have now increased for 2 months in a row. Sydney sits at 5th in month-to-month growth out of the 8 capital cities – behind Darwin, Perth, Brisbane and Hobart.
Below are the Sydney real estate market trends from Cotality’s (formerly CoreLogic) Home Value Index for June.
|
Monthly Change |
Quarterly Change |
Annual Change |
Median Value |
|
0.5% |
1.1% |
1.1% |
$1,203,395 |
The recent back to back interest rate cuts after 13 consecutive increases have certainly played a pivotal role in the recent recovery of the Sydney real estate price trends. As borrowing costs decrease, buyers are able to increase their budgets, fuelling competition across the board.
The affordability of homes is still a big detriment to many potential buyers. The 2024 affordability report from CoreLogic and ANZ has the average home price being now 8 times the average household income. That has meant it takes about 10 years to save a 20% deposit and it’s now over 50% of the average household income that is used to service a mortgage.
Predicting real estate price trends for Sydney is always difficult. Nobody can accurately predict the top or bottom of any given market. It is still a good idea to be aware of factors that can influence prices in the future and what some of the larger institutions are saying.
Decreasing interest rates is a key sign for hopeful growth over the coming months. If the RBA continues to decrease the interest rate, it may push this even further. However, there are always some factors that hint at a slower rate of growth to come. Of course, the aforementioned affordability of homes plays a role and the various policies implemented or potentially to be implemented by the Labour government. This includes the Build to Rent scheme, Help to Buy & the Downsizer Super Contribution program. It is important to note that most of their programs or policies are centred around first-home buyers so while they may influence the broader market, the impact may be limited to certain areas or markets.
As of the 19th of June, Domain has forecasted continued growth in Sydney for both Houses and Units alike. They’ve estimated 7% growth and 6% growth for houses and units respectively over the 2025-2026 financial year. In their more detailed report, they cite lower borrowing costs, lower unemployment and rising incomes as key factors to the continued growth for houses across Sydney. First-home buyer demand and affordability pressures are cited to play the largest roles for units.
In their HVI for June, Cotality closed off predicting a “modest rise” for housing values across 2025 albeit slower than what was recorded in 2024.
Knowing who to trust and having support when dealing with real estate is vital to having a good outcome. You need more than just knowing and tracking the Sydney real estate price trends. You need security and safety.
At Jenman Support, we help to support and protect real estate consumers. All our support, protection and guidance is completely free and we’ll never ask you to sign anything.
For sellers, we can help you to find the best real estate agent to ensure you get the best price for your property. But what does “best” mean? It means no upfront costs, no locked-in contracts and no charges until happily sold.
For buyers, we can help guide you through the process and navigate the common tactics agents use. You can download a copy of our booklet “The 13 Worst Mistakes Made by Homebuyers” to help get an idea of what to look out for.
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