CoreLogic’s latest monthly chart pack estimated that the value of Australia’s housing stock hit a record high of $11.3 trillion in March, spread across 11.3 million dwellings.
This meant that the average value of an Australian home hit $1 million for the first time.
Last week, Domain released its house price results for the March quarter, which revealed that Adelaide’s median house price hit the million-dollar mark, joining Sydney, Melbourne, Brisbane, and Canberra in the million-dollar club.
Australia, therefore, now has five capital cities with median house prices above $1 million, with the median value at the combined capital city level at $1,178,668, according to Domain.
The Reserve Bank of Australia (RBA) is forecast to cut the official cash rate by between three and five times by the end of this year.
The resulting lower mortgage rates and increased borrowing capacity are certain to stimulate demand and drive prices higher.
The Albanese government, which looks certain to win the upcoming federal election, has also promised to enable all first home buyers to purchase a home with only a 5% deposit starting 1 January 2026, with the government (taxpayers) guaranteeing 15% of every first home buyer’s mortgage.
Combined with its recent ruling that mortgage lenders would no longer need to consider student debts in mortgage serviceability calculations, Labor’s housing policies are certain to add more mortgage fuel to the fire and drive prices higher.
As a result, expect to see Perth join the $1 million median house price club in 2026.
