LocalAgentFinder Looks Ahead to Residential Real Estate Trends for 2025

Careful planning and speed to market key to a successful sale

LocalAgentFinder, Australia’s leading real estate agent comparison platform, forecasts what sellers and investors can expect in the property market for the first half of 2025.

“Our data on seller intentions indicates that, in early 2025, New South Wales and Victoria will have 31% stronger listing activities compared to Queensland and Western Australia,” says Suresh Raghavan, Acting CEO of LocalAgentFinder.

For transaction volumes, Sydney’s high-value market typically dominates in New South Wales. Sydney is expected to see increased selling activity in 2025 driven by interest rates remaining high and weakening house prices,¹ making the property market more attractive to buyers. This enhanced affordability, combined with rising buyer confidence, will provide an opportunity for sellers to capitalise on.

“The growth in house sales in Melbourne, will be due to the continued distress sales of homes notably due to financial stress and rising interest rates,” says Raghavan. The increase in land tax and the changes in negative gearing has placed additional financial pressure on property owners and is expected to prompt more sales activity. Reports indicate that mortgage default-related auctions are up by 36% in Melbourne compared to last year.² Additionally, several regional areas have seen similar increases, reflecting the financial strain across the state. The impact is also evident in increasing rental prices and pressures on affordable housing, pushing more households into economic vulnerability.

Raghavan adds, “In Queensland, ongoing interstate migration and major infrastructure projects in Brisbane are supporting house sales. Brisbane is experiencing a strong growth in the number of houses for sale, due to the strong market and increase in house price.”

“In Perth, a combination of low vacancy rates and strong market demand has led to the highest annual price increase,” says Raghavan. “Properties in Perth are seeing an upward pressure, creating a seller’s market, with many sellers holding onto their properties, hoping for even greater returns.”

“With more listings hitting the market in Victoria and New South Wales, buyers are actively searching, but they’re also well-prepared and selective.  Buyers are out there, but they have more choices now. Sellers who act strategically – pricing their homes well and listing with experienced agents are reaping the rewards,” says Raghavan.

Raghavan emphasises the importance of careful planning and speed to market: “For sellers, the first half of 2025 is shaping up to be a promising window to achieve strong results. Early movers who list in the first quarter of the year, to capitalize on the buyer activity as the market reawakens after the summer holidays, can benefit from less competition and heightened buyer interest. For investors, while the rental market remains strong, understanding the broader economic factors and local trends will be key to ensuring long-term success. The mid-year period could present opportunities as Reserve Bank of Australia (RBA) is expected to reduce the interest rates and create an uptick in the property market.”

A platform such as LocalAgentFinder connects homeowners, and investors with experienced real estate agents who understand the unique dynamics of their local markets, offering a transparent platform to compare agents based on expertise, fees, sales history, and reviews, ensuring sellers and investors have the insights they need to make confident decisions. “Sellers using LocalAgentFinder  to connect with an agent go to market in as little as one to three weeks. This can be up to three times faster than those who don’t connect with a LocalAgentFinder agent. Timing and strategy are key in a competitive environment, and working with the right agent can make all the difference,” says Raghavan.

In 2024, Australian homeowners demonstrated increased responsiveness in the dynamic real estate market, significantly reducing the time it takes to list their properties after registering it with LocalAgentFinder. Nationally, the average time from researching to listing their property on the market has dropped to 26 days, a 34% improvement compared to 2023.

This trend is evident across the country, with Western Australia leading the other states with speed to market, with an average of 24 days, 32.38% faster than in 2023, followed by Queensland at 26 days and Victoria at 27 days, which is 33.23% and 32.45% faster than 2023 respectively. New South Wales has the best improvement from 2023 at 34.72%, with an average of 27 days to list properties. This increased speed to market underscores how the technology-enabled platform, LocalAgentFinder, enables homeowners to quickly connect with their preferred agent and improve their chance of a successful sale.

For investors, the rental market remains a bright spot, with low vacancy rates and rising rents sustaining demand for investment properties. However, higher mortgage repayments are expected to prompt some investors to reassess their portfolios, particularly in regions where growth has plateaued. Careful evaluation of long-term opportunities will be crucial for navigating these challenges effectively. The key to success is to work with an agent who can expertly navigate the market and optimise sale strategies, helping maximise investment returns and provide valuable insights.

“It’s a market that rewards those who make informed decisions, and having a trusted real estate agent with a deep understanding of local market dynamics can make all the difference,” states Raghavan.

“Overall, the outlook for Australia’s housing market in 2025 indicates a move towards more normal listing volumes, moving away from the intense activity seen in 2021-2022. While transaction levels might seem lower than those peak years, this change reflects a shift towards a more sustainable and balanced property market.”

This year, for the fourth consecutive year, LocalAgentFinder has secured a coveted place on the Australian Financial Review’s (AFR) Fast 100 list, further solidifying its position at the forefront of the proptech sector. This milestone highlights the platform’s commitment to deliver value to homeowners, agents and investors and drive the digital transformation in the real estate market. LocalAgentFinder achieved an impressive 32.61% revenue growth in FY24, driven by a surge in listings and by gaining a significant share of the market.

For more information, please visit https://www.localagentfinder.com.au/.

¹https://sqmresearch.com.au/uploads/26.11.24%20Housing%20Boom%20and%20Bust%20report%202025%20media%20release%20final.pdf

² https://www.theurbandeveloper.com/articles/victoria-distressed-property-listings-october-2024