Housing Affordability Reaches 15-Year High Pressure Point
Australian residential property sellers are experiencing their most profitable conditions in more than 20 years. In the September 2025 quarter, 95.5% of homes resold across Australia achieved a nominal profit, the strongest result since 2005. This surge was driven by a revitalised housing market, with national home values setting record highs for eight consecutive months and the median resale gain rising to a new peak of $335,000. While these figures highlight the strength of recent price growth, they also set the backdrop for growing affordability pressures and higher borrowing costs confronting today’s buyers.
Families moving for affordability
Many buyers are relocating for cheaper living costs, often trading capital city prices for a rural lifestyle. One recent example: a Brisbane family moved from Toowoomba to Blackwater in central Queensland. By doing so, they slashed their mortgage from about $740 to $330 per week. They also benefited from higher incomes (the husband landed a new mining job), so their overall budget improved. However, these moves come with trade-offs. Smaller towns have fewer homes for sale, so you often face tight competition. In the Ballini family’s case, “every time we found one [five-bedroom home], it was already under offer. In short, regional markets are smaller and demand can flood in quickly, driving prices up. PropTrack’s Angus Moore warns that as more people move out, those “more affordable” areas see even faster price growth, and he doesn’t expect prices to ease any time soon.
What buyers should watch
As buyer’s agents, we coach our clients to balance location risk with affordability. Here are key focus points:
- Location vs Affordability: Regions outside the capitals can offer lower entry prices, but they carry higher volatility and fewer buyers. Check job growth and local infrastructure before committing.
- Regional Market Strength: Many regional QLD towns have outpaced city growth. For instance, Blackwater’s 15% home-price rise was well above Sydney’s 6.5% and Melbourne’s 4% gains. Strong growth can signal opportunity, but also foreshadow peaking demand.
- Stock Scarcity: Supply is a big factor. In tight markets, listings disappear fast. As Moore notes, even a small influx of buyers can make it “challenging to find homes” in a town with few listings. Be prepared to act quickly and bid confidently.
- Lifestyle vs Investment: Some buyers move for lifestyle (lower living costs, more space). That makes sense — the Ballini parents now enjoy a friendlier community and lower bills. Just remember that remote areas may take longer to sell or change value if major industries shift.
- Market Outlook: PropTrack’s latest report emphasises that prices aren’t expected to fall soon. This underlines the need for long-term planning. Don’t assume relief; instead, build a strategy that covers high mortgage costs and focuses on sustainable suburbs.
In short, today’s market rewards buyers who take a careful, well-researched approach. That’s where we come in. We are buyer agents who assist clients in understanding all the relevant financial details related to purchasing a home, including the amount they can borrow, financial product alternatives, and which suburb(s) they should focus on based on their long-term residential goals. We take all of the market data available that can be overwhelming and turn it into easy-to-understand, sound, actionable recommendations so that clients can continue to move toward their home ownership dreams with confidence.
Need expert guidance?
Looking for some guidance? Buyer Insight works with both first-home buyers and investors to help them navigate the market with clarity. We’ll walk you through your budget at today’s interest rates, compare suitable loan options, and identify areas that balance affordability with long-term growth.
You can also call us on 61 468 444 478 or book a free 30-minute consultation. Follow us on Instagram and LinkedIn for more property market tips and updates.
