The majority of Australia’s real estate professionals (65%) predict house prices will rise in 2025, driven by improving affordability, rising incomes and the potential of cuts to interest rates, according to CoreLogic’s annual report Decoding 2025.

The report*, which uncovers insights from over 2,400 real estate agents and banking and finance professionals, explores key challenges facing the industry including the housing market, first-home buyer trends and business priorities.

It reveals that two-thirds expect house prices to rise, with 25% predicting gains exceeding 5%. Queensland emerged as the standout market, buoyed by strong internal migration trends, with 70% of respondents forecasting price growth for the Sunshine State in 2025.

In Melbourne, where CoreLogic data shows the median dwelling value of $774,000 has fallen -6.4% below its 2022 peak of $801,000, agents anticipate a potential recovery, citing affordability and renewed demand.

CoreLogic’s Head of Research, Eliza Owen, said economic recovery in late 2024 has laid the groundwork for increased buyer activity in the year ahead.

She said the survey results reflect the outlook shared by CoreLogic and many leading economic commentators from major banks.

"Improving household savings and easing interest rates are expected to drive demand later in 2025, even as supply challenges persist," she said.

“Despite some softening in the market in early 2025, it is expected conditions could pick up later in the year alongside lower interest rates, higher real income growth and improved affordability in markets like Melbourne."

“While we do expect values to finish 2025 higher, the pace of increase will probably be softer than the 4.9% achieved in 2024.”

The Bank of Mum and Dad

The survey also explored the challenges faced by first-home buyers in the current market. A significant 87% of agents reported longer savings periods, while 77% observed a growing dependence on financial assistance from parents.

Despite these hurdles, agents noted that first-home buyers are adapting by seeking smaller, more affordable properties or adopting 'rentvesting', renting in desirable areas while investing in properties elsewhere.

Looking ahead to 2025, the Federal election is expected to bring housing supply into sharp focus, with nearly two-thirds of respondents (63%) identifying it as the top policy priority to address affordability challenges.

“Strategic housing policies targeting faster approvals, increased land release, and incentives for diverse housing types will be critical in addressing supply constraints,” Ms Owen said.

“Clear, supportive measures can instil confidence in buyers and sellers, driving sustained activity across the property sector.”

Nurturing Contacts as Key Focus for 2025

The survey not only examined market trends but also uncovered the key operational priorities for real estate businesses in 2025.

Alongside views on housing supply and affordability, agents identified their top goals as nurturing contacts (84%), converting website traffic into listings (83%), and strengthening team prospecting culture (80%).

Developing a stronger digital and social presence and leveraging customer data to enhance performance were also high on the agenda, with four out of five respondents prioritising these strategies.

CoreLogic’s Head of Real Estate Solutions, Josh Symons, said these findings underscore the industry’s focus on innovation and efficiency.

"Having a well-defined first-party data is a game-changer for agencies looking to grow their business in 2025,” he said.

“By understanding client behaviours and preferences, agents can deliver personalised, timely outreach that builds trust and drives results. Leveraging tools like AI not only simplifies these processes but also enables agencies to maintain a competitive edge in an increasingly digital marketplace."

The full survey results, including insights from the New Zealand market, are available in Decoding 2025. This expert guide provides real estate professionals actionable strategies for navigating the year ahead.

Covering topics such as shifting buyer behaviours, smarter data applications, and regional insights, the guide equips agents with the tools needed to succeed in a dynamic industry.

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