In fantastic news for Australian property owners, real estate values rose by 1.1% nationally in October, the fastest monthly gain since June 2023.

At the same time, the latest data from Raine & Horne indicates that a shortage of listings remains a key driver behind the rapid growth rate.

According to Cotality’s October Home Value Index, momentum has been building in the rate of housing value growth since the first rate cut in February, pushing the annual pace of growth to 6.1% nationally[i]. This momentum has continued with the rate cuts in May and August.

“Before the February rate cut, housing conditions were losing momentum, even recording flat to falling values through late 2024 and January 2025,” said Tim Lawless, Cotality’s Research Director. “The first rate cut in February marked a clear turning point, with home values moving through a positive inflection across most regions and gathering steam since then.”

Monthly gains were recorded across the board in October, with every capital city and rest of state region recording a monthly rise in value, ranging from a 1.9% surge in Perth to a 0.3% rise across Hobart. Across the combined capitals, the 1.1% gain in October equates to an increase of just over $10,000 in the median dwelling value over the month. Since February, capital city dwelling values have increased by 5.9%, or approximately $53,700.

A variety of factors are supporting stronger housing conditions, but the primary driver remains the imbalance between supply and demand. Raine & Horne reports that nationally, property listings in October were 30% lower than the same month last year. Although there are signs of improvement, with listings rising nearly 9% month-on-month in October. That being said, appraisals for homeowners considering selling fell 18% in October compared to the same month a year earlier, suggesting the shortage of available stock is likely to persist.

Such tight supply levels, combined with above-average demand, have tilted selling conditions in favour of vendors through spring. Although auction clearance rates have eased slightly, according to Cotality, they remain above the decade average – in the high 60% to low 70% range since early September. Supporting the demand trend, Raine & Horne reports that nationally open home attendances in October were up slightly year-on-year and were 10% higher than in September.

The acceleration in real estate values also coincides with the expanded 5% deposit guarantee scheme, effective from 1 October, which has likely boosted demand for housing, especially in the lower to middle price points of the market.

Indeed, it is the broad middle and lower quartile of the market where gains are strongest, according to Cotality. Across the combined capitals, dwelling values were up 1.4% across the middle market and rose 1.2% across the lower quartile, while upper quartile values were 0.7% higher through the month.

“While listings are down compared to the same time in 2024, it’s great to see some blue sky on the supply front with listings stronger in October compared to September,” said Angus Raine, Executive Chairman, Raine & Horne.

“All the ducks are lining up for vendors considering a sale before Christmas, with lower interest rates and the expanded 5% deposit guarantee scheme underpinning demand at the lower levels.

“These factors augur well for the remainder of 2025 and into next year, and I’d urge those owners sitting on the fence to make a move now and call their local Raine & Horne sales agent for an obligation-free appraisal of the property’s value.”

In more good news, regional markets also posted robust returns in October, with a 1.0% increase - this is the highest monthly gain since March 2022. Regional WA led the charge with a 1.8% increase in values, followed by Regional Queensland, which rose 1.1%, and Regional NSW, with a 1.0% increase.

Change in dwelling values capital cities – October 2025

(Source: Cotality Home Value Index 3 November 2025)

If you’re considering listing a property this spring, contact your local Raine & Horne agent today.

[i] https://www.cotality.com/au/insights/articles/housing-values-rising-at-the-fastest-pace-in-more-than-two-years?utm_source=adwords&utm_medium=ppc&utm_campaign=2025_Cotality_Search_Brand_Leads&utm_term=cotality