The spring selling season in Australia is here, and it’s already proving to be a busy time for buyers and sellers. Experts note that lower interest rates and pent-up demand are drawing more people into the market. A recent report from Canstar shows Sydney’s median house price is on track to rise by $154K, reaching about $1.68 million by the end of 2026. Melbourne, Brisbane, and Perth are also set for big gains: Melbourne’s median could top $1.06M (+$103K), Brisbane’s $1.13M (+$93K), and Perth’s $984K (+$102K). These projections underline a key reality: the spring market looks set to push prices higher, and many first-home buyers may see the $1 million barrier finally break in Melbourne.
With prices climbing, it has become harder for buyers to save deposits. Canstar’s data director Sally Tindall warns that this surge will make the deposit hurdle “a whole lot steeper,” especially for first-home buyers. Even with interest rates expected to fall, the extra borrowing power from rate cuts could be swallowed up by higher prices. In other words, cheaper loans may not help much if market prices keep surging. This means every month you wait, your entry price into the market could be significantly higher than it is today.
On top of rising prices, supply remains very tight. Australia’s property sales are running about 2% higher than a year ago and 4% above the five-year average. Yet advertised listings are still around 20% below normal levels for this time of year. This supply crunch creates a “perfect storm” favouring sellers. In a hot spring market, vendors are the big winners: confident buyers face scarcity, meaning auctions and sales can get very competitive. In Sydney, for example, sellers are already enjoying extreme demand – as many as 150 buyers have been chasing a single home. This highlights how fierce competition can be when stock is scarce.
What This Means for Buyers
- Don’t Delay Your Purchase – With prices rising fast, every month in the market can add thousands to the purchase price. In today’s climate, waiting often means paying more in the long run. “Being late to the party in today’s market comes at a cost,” notes Investmate research.
- First-Home Buyers Face Higher Hurdles – The jump in median prices pushes the $1M barrier further out. First-home buyers will likely need larger deposits and may need to tap schemes or seek low-deposit loans. Government incentives (like the First Home Guarantee) can help, but the core challenge remains: affordable entry is narrowing.
- Opportunity for Investors – For investors, the upside is strong capital growth. The rise in the market means properties you buy now may gain good value in the coming years. However, be ready to compete fiercely for good deals.
- Low Listings & Tough Competition – Off-market deals often come with less competition and sometimes a better price. In fact, experienced agents point out that off-market purchases can save buyers a lot of money, since they avoid the frenzy of open market auctions.
- Use a Buyer’s Agent to Stay Ahead – This season’s fast pace means acting early and having an edge matters. A local buyer’s agent can alert you to new opportunities the moment they arise, secure off-market access, and negotiate on your behalf. We help clients move quickly – from arranging inspections to running negotiations – so you don’t lose out to better-prepared bidders.
Ready to make your move? For tailored advice or to discuss your buying strategy, contact Investmate. If you really want to take a step ahead, feel free to call us at +61 421 942 049 or book a free consultation today. Investmate is here to help you guide you well and secure the right property in the market.