Regional sales still strong

According to the latest PropTrack Home Price Index report, house prices in regional Victoria continue to outpace Melbourne.

The report states regional prices climbed 0.6 per cent in November and were up 9.3 per cent year-on-year.

It says regional growth has outpaced the capitals over the past year (9.3 per cent vs 8.5 per cent) and five years (64 per cent vs 47 per cent), supported by relative affordability and lifestyle appeal.

However, regional outperformance is narrowing as the stronger acceleration in home prices is now coming from the capitals.

Eleanor Creagh, Senior Economist at the REA Group says summer will be a sellers' market.

"National home prices rose 0.5 per cent in November and are now 8.7 per cent higher than a year ago, the fastest annual growth since mid-2022. Momentum has firmed throughout 2025, but stretched affordability means growth remains well below the 20-30 per cent annual gains seen in past booms," Ms Creagh.

"Lower interest rates, increased borrowing capacities, and a recovery in sentiment have underpinned this year's reacceleration."

Ms Creagh said Darwin, Hobart, Melbourne, Canberra and Sydney have recorded a strengthening in annual growth compared with late 2024.

She said unit growth is outperforming houses in most cities, "as buyers pivot toward more attainable options".

"Population inflows, a lift in investor activity, and the expanded Home Guarantee Scheme have reinforced demand, alongside this year's series of interest rate cuts.

"At the same time, total stock on market has been tight, and the delivery of new housing remains constrained, tilting conditions toward sellers.

"These factors point to further price gains through summer," she said.

"However, monthly growth eased across the capitals from October's stronger pace, and with interest rates now expected to remain on hold for an extended period, affordability constraints are likely to see price growth moderate throughout 2026."