Sept 15, 2025
NAB Australian Housing Market Update – September 2025
Welcome to Cotality (CoreLogic)’s housing market update for September 2025.
Housing values are blooming ahead of spring, with the national Home Value Index up 0.7% in August, the strongest monthly gain since May last year.
The growth cycle has been gradually building momentum since the February rate cut, with buyer demand spurred by a lift in borrowing capacity, real wages growth, rising confidence and what is likely to be a growing sense of urgency as advertised stock levels remain tight. The monthly rise pushed the annual change higher for the second month in a row, to 4.1%.
While housing values are rising across most regions, the pace of growth remains modest relative to recent upswings. During the pandemic, the monthly change in the national index peaked at 3.1% in March 2021, and the upswing commencing in early 2023 climbed quite rapidly, reaching a 1.3% high in May 2023.
It would be surprising if the monthly rate of change rose to anywhere near these earlier cyclical peaks given how stretched housing affordability has become. What’s more likely is that home values will rise at a more sustainable pace, with demand dampened by affordability constraints, more normal rates of population growth and cautious lending policy.
