As buyer’s agents based in Sydney, we pay close attention when headlines say “median house prices could rise by up to $134,000 by 2027”. Westpac’s latest outlook (analysed by Canstar) suggests, for example, Sydney’s median home might climb from $1.58M to $1.70M (≈+$120K), and Perth’s from $955K to $1.09M (≈+$134K) by end-2027. In fact, if forecasts play out, five of the six major cities would have median house prices over $1 million. These figures underline that housing in Australia remains in a strong upswing – but they are forecasts, not certainties.
It’s natural for buyers to feel anxious when hearing about six-figure price rises. Industry experts warn against panic. As one seasoned adviser recently noted, property buyers “need to calm down, stick to their budgets, and seek expert advice from professional buyer’s agents to ensure they don’t overpay”. In other words, don’t let FOMO drive you to bid beyond your means. At D’MANSHA, we agree – stay grounded on your budget. In fact, recent cash-rate cuts in 2025 have already lifted the borrowing power of the average wage earner by about $35,000, but that should be seen as a helpful buffer, not a reason to overextend.
From our viewpoint, these forecasts reinforce why a data-driven approach matters even more today. We encourage all buyers to focus on fundamentals: the suburb’s growth potential, rental yields, and your long-term plan – not just short-term hype. We “break down repayments, rental yields, and capital growth trends, so [you’re] not guessing… [and ensure] decisions are driven by numbers, not nerves”. This means mapping out what you can genuinely afford (for example using our Borrowing Power Calculator to test scenarios), and being ready to walk away if a deal exceeds your limit.
- Crunch the numbers. Use tools like our Borrowing Power Calculator to work out exactly what you can borrow. (Canstar analysis shows RBA’s rate cuts added about $35K to a single average earner’s borrowing capacity.) Factor in all costs (deposit, stamp duty, rates) so you buy within your comfort zone.
- Stay calm and budget‑focused. Remember that buyer competition (“FOMO”) can push prices up fast. As industry pros advise, stick to your budget and lean on expert guidance. Rushing or overbidding can leave you with regrets.
- Focus on fundamentals, not hype. Look at location, long-term growth and rental returns over temporary market noise. We’ll break down the numbers for you – for example, comparing suburbs by expected growth and yield, so your decision is smart and not emotional.
- Use expert help. D’MANSHA buyer’s agency can access off‑market opportunities and negotiate firmly on your behalf. We manage the research, inspections and paperwork, keeping you updated throughout (see How We Work). In a fast market, our support can help you spot value and avoid pitfalls.
Looking ahead, it’s true forecasts show rising prices, especially where demand outpaces supply. But forecasts also slow after 2026, and any future rate hike or new housing supply could ease things. The key for buyers is: plan carefully and act wisely. If now’s the right time for you based on your finances and goals, that’s what matters – not just the headlines.
Ready to Invest with Confidence?
If you’re ready to make property work for your future, D’MANSHA is here to help. We are a specialist buyer’s agency focused on long-term outcomes and strategic decision-making. Contact us today at 0406 11 22 44 or book a free consultation to start the conversation. With expert guidance and a clear strategy, your dream home or investment can be the foundation of real wealth – and D’MANSHA will help you get there. Stay connected with us on LinkedIn and Instagram to know about the latest updates in the Australian market.