What to expect in Australia’s housing market in the year ahead

Publication Date: Tuesday, 14 January 2025
This article originally appeared in AustralianBroker.

Market players continue to weigh in on what the year ahead will look like in Australia’s housing market. With so many different variables –  rate cuts, inflation, rising housing prices, a housing shortage, an election year and continued geopolitical tensions abroad — comes uncertainty, and differing opinions. 

Home prices are expected to rise, but only in some of Australia’s major cities. Meanwhile, opinions vary on when the RBA‘s next rate cut will be. There’s also an upcoming election both domestically and abroad. 

Australian Broker caught up with key players in the market to hear their thoughts on the year ahead. In a two-part series, AB asked some of the nation’s top brokers and lenders what they’re expecting and how they’re preparing for 2025. But just as Australia’s housing market is diverse, so are expectations for the future. Continuing with lenders, here’s what a few had to say. 

Chris Meaker

Melbourne-based director, head of sales and distribution at non-bank lender Brighten

“From what we’re hearing, we do expect the rates to drop next year, hopefully in Q1 or Q2. That’s the biggest thing that will drive confidence in the market,” Meaker said. “And that confidence means customers might want to buy an investment property, or a bigger house, or to do construction. So we think next year is going to be bigger for us. And we’re looking to take on more business development managers, because we expect to see some significant growth next year, especially, in the construction side of the business and in investment properties. [Customers] might not be able to borrow as much as they can from a bank. So they’ve come to us because we’re able to lend more money because we’ve got a better borrowing capacity.”