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US house prices underperformed in June
United States house prices grew by 2.9% year-over-year last quarter, according to the Federal Housing Finance Agency, but continued to underperform in June. House prices were unchanged from the year’s first quarter, however. Prices rose by 1.9% year-over-year in June, their slowest pace in around two years, per the S&P Totality Case-Shiller Index. “For the first time in years, home prices are failing to keep pace with broader inflation,” said Nicholas Godec, S&P Dow Jones Indices head of fixed income tradables and commodities. The Consumer Price Index rose by 2.7% from June 2024 to June 2025. “What makes this deceleration particularly noteworthy is the underlying pattern: The modest 1.9% annual gain masks significant volatility, with the first half of the period showing declining prices (-0.6%) that were more than offset by a 2.5% surge in the most recent six months, suggesting the housing market experienced a meaningful inflection point around the start of 2025.” House prices have risen in 46 states since the second quarter of 2024, with New York leading at 8.0%. Connecticut and New Jersey, also northeastern states, placed second and third. The District of Columbia reported the largest price decline in that period,
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New US home sales extend decline in July
New home sales in the United States dropped in July, continuing the slump seen across much of 2025 to date. Single-family housing sales last month were at a seasonally-adjusted annual rate of 652,000. This is 0.6% lower than the rate in June, and 8.2% below July 2024. Around 499,000 new houses were available for sale at the end of July, dropping by 0.6% from June but 7.3% above July 2024. “This represents a supply of 9.2 months at the current sales rate,” according to the U.S. Census Bureau. “The months' supply is virtually unchanged (±16.7 percent)* from the June 2025 estimate of 9.2 months, and is 16.5 percent (±19.0 percent)* above the July 2024 estimate of 7.9 months.” June’s sales rate was also revised upwards from 627,000 units to 652,000 units. The median sales price last month was US$403,800, down 0.8% from June and falling 5.9% from July 2024, and is the lowest median price seen in eight months. Most houses sold were priced between US$300,000 and $399,999, at 18,000 units. This was a decline of around 1,000 units from June, while the $400,000-499,999 price bracket posted an increase of 1,000 units to 12,000. Sales of houses priced at more than US$1,000,000 also dropped by about 1,000 units, reaching 2
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Price caps lifted on Australia's first home buyer scheme
The Australian Government has moved to remove all caps on its First Home Guarantee scheme from October 1, allowing an unlimited number first-time buyers to purchase properties with just a 5% deposit. The expanded scheme delivers on the government's election commitment to support all Australians into home ownership, according to Housing Australia. The changes eliminate both placement limits and income restrictions that previously capped individual earnings at AU$125,000 (US$81,000) and joint applications at $200,000.Price caps increase across major citiesSydney buyers will see price caps jump from $900,000 to $1.5 million, whilst Melbourne's limit rises from $800,000 to $950,000. Brisbane's ceiling increases to $1 million from $700,000, and Perth climbs from $600,000 to $850,000. These adjustments reflect surging property price growth that has pushed median house values up to $825,000 (as of April). But whether the caps will meaningfully expand access remains questionable when Sydney's median house price sits well above even the new $1.5 million threshold.Mechanics unchangedHousing Australia provides a guarantee to participating lenders, enabling buyers to borrow up to 95% of the property value. The guarantee covers up to
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ANZ: RBA rate cuts to boost Australia’s housing market
ANZ Research has raised its housing price forecasts for Australian capital cities, now predicting a 5.0% year-on-year increase in 2025 and 5.8% in 2026. Three key factors underpin this outlook: rate cuts, supply constraints, and affordability pressures. The Reserve Bank of Australia’s easing cycle, which began with a rate cut in February, helped reverse a shallow three-month housing downturn. Since then, capital city housing prices have grown at an annualised rate of 7.4% over the past three months. Historically, easing cycles have seen capital city prices rise by an average of 6.1% in the first year (7.4% excluding the post-GFC cycle). ANZ expects the RBA to cut rates by 25 basis points again in November, further supporting house prices. Supply remains tight, with new listings down over 10% year-on-year and total listings around 29% below the 10-year average. This shortage is expected to ease slightly with the upcoming spring selling season but will continue to exert upward pressure on prices, especially in regions with strong population growth. Affordability constraints are expected to limit sharp price increases. Lower-priced properties are seeing stronger gains, with prices in the bottom quartile rising 5.7%
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Property-backed loans up in FY2025 amid rate cuts: PEXA
Property-backed loans settled in Australia’s mainland states rose by 6.8% across the 2025 financial year, aided by a boost in buyer sentiment from rate cuts, according to a PEXA report. In FY2025, 544,630 new property-backed loans were settled in New South Wales, Victoria, Queensland, Western Australia, and South Australia. Queensland led in total property settlements, while Victoria saw the most new mortgages. “521,750 of these loans (96%) were attached to a residential property. This surpassed growth in property settlement volumes over the same period (up by just 3.2% y/y), indicating that a greater proportion of property settlements required a loan,” wrote PEXA. A total of A$380.6 billion was settled in new loans over the last financial year, up 14.7% from the previous year, with $346.4 billion for residential property. New commercial loans rose by 13.2% to 18,000 in New South Wales, Victoria, and Queensland, with their value rising by 22.2% to $34.2 billion. According to the report, the Reserve Bank of Australia’s 25-basis point cash rate cuts in February and May “helped to support household sentiment, consumption, home purchases and savings rates.” Victoria posted the most new loans in FY2025 at 148,126. It

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British home prices see largest tumble since 2002
The average asking price for British homes recorded its biggest fall in more than 20 years. According to property site Rightmove, the average price of homes coming onto the market dropped by 1.2% to £373,709 from 8 June to 12 July. While it is typical for there to be a seasonal drop in house prices in July, this marks the largest monthly fall since Rightmove began its index in 2002. The increase is spurred on by the number of properties for sale, which is at its highest level in a decade. “What’s most important to remember in this market is that the price is key to selling,” Rightmove property expert Colleen Babock says. “The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area.” London saw the highest number of falls in asking prices, dropping 1.5% from last month and sliding by 2.1% in inner London. Despite the stamp duty deadline ending in April for England and North Ireland, sales agreed rose 5% from last year. The sales-agreed increase was helped along by competitive pricing. “Even after the stamp duty deadline, we’re seeing more sales being agreed and more new potential buyers enter
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Saudi Arabia opens property market to foreign nationals
In a historic policy shift, Saudi Arabia has approved legislation allowing foreign nationals to own property across the kingdom — including, for the first time, in the holy cities of Mecca and Medina — under tightly regulated conditions. The law, passed by the Saudi Cabinet and chaired by Crown Prince Mohammed bin Salman, is set to take effect in January 2026. Ownership in Mecca and Medina will be restricted to Muslims and confined to designated zones and major developments such as Masar Makkah. The Real Estate General Authority will publish detailed executive regulations within 180 days, outlining geographic eligibility, buyer criteria, and compliance mechanisms. The reforms are part of Saudi Arabia’s broader Vision 2030 strategy to diversify its economy and attract foreign investment beyond oil. Foreigners will be permitted to purchase residential and commercial properties in cities like Riyadh and Jeddah. Direct ownership rights are granted to individuals holding valid residency permits and international companies with local presence. The move triggered a rally in Saudi real estate stocks, with some developers gaining over 6% on the Tadawul exchange. Officials have stated that the law aims to improve projec
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Homebuyers urged to compare rates amid lack of cuts
Compare the Market urges homeowners to negotiate rate cuts or switch to cheaper rates to save. The recommendation came despite the RBA’s decision to hold rates at 3.85% in a split decision between the RBA board. Compare the Market's economic director, David Koch said that while the RBA announcement may be disappointing, there is still hope for borrowers who are willing to negotiate or switch to a better rate. “There can be a 0.50% difference between some of the advertised rates on Compare the Market’s home loans panel so you can effectively create your own rate cut by shopping around,” Koch said. “That could represent a saving of $210 on monthly repayments – or $2,520 over a year – for someone with an average $660,000 loan. “And that’s just looking at rates for new customers, which we know are often much more enticing than the rates available to older customers who have not refinanced in a number of years.” A survey of homeowners by Compare the Market found that around 65% of respondents who had mortgages for +3 years had not refinanced for more than three years. While more rate cuts are forecast for the rest of the year, Koch advised that it’s a good idea to compare options now. He said homeowners can’t al
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Adelaide home prices see highest gains in June
Australian home prices rose by 0.4% in June, with Adelaide leading the increases seen across all markets. Housing prices nationwide are now 4.6% higher than in June 2024, according to PropTrack and REA Group’s Home Price Index report. Adelaide’s monthly increase was the largest in any market at 0.6%, with prices up 0.4% in the capital cities. “National home prices rose 0.4% in June, pushing values to a record high. As interest rates have fallen, price momentum has strengthened and extended across the country, with all markets recording gains in June,” according to the report. “Capital city markets are leading the upturn, with price growth in all cities in June, following outperformance by Adelaide, Brisbane and Perth in 2024.” Sydney and Hobart both saw 0.5% monthly price increases, with Sydney posting the highest median housing value nationwide at A$1.18 million. Darwin’s prices rose the least in June, by 0.2%. Among regional areas, regional Queensland reported the highest growth at 0.5%, while housing prices in regional Victoria, Tasmania, and the Northern Territory all increased by 0.1%. Regional housing prices were up 0.3% in June. Capital city housing prices have grown by 4.1% over the past twelve months, wi