As market conditions shift, 2025 could present a prime opportunity for homeowners looking to upgrade. A combination of anticipated interest rate cuts, rising property listings, and increased buyer confidence may create the right environment for those ready to move up the property ladder.
According to Angus Moore (pictured left), executive manager of economics at REA Group, rate reductions could provide a crucial boost to purchasing power.
“We’re expecting that we’re going to see an interest rate cut this year, and that’s going to boost borrowing capacity for buyers,” Moore said.
This potential for increased borrowing capacity is already turning heads among next-home buyers, many of whom have seen significant equity growth since the pandemic-driven price surge.
Moore noted that many upgraders are well positioned thanks to rising home values over recent years.
“[They’ve seen] big increases in their home equity on the back of home price growth throughout the pandemic,” he said.
Elliot Gill, director at Jellis Craig Richmond, agreed.
“The bold prediction for this year is the tougher the market is, the better the conditions for an upgrader,” Gill said. “I think many are going to look back at 2025 and wish they’d made that move.”
Still, a common concern among upgraders is timing — particularly whether they’ll find the right property after selling. Gill is optimistic.
“I think this year is going to give them [upgraders] that opportunity to have a lot of choice available and give them a great deal of confidence to make that move,” he said.
One of the biggest advantages for buyers in 2025 is the growing pool of available properties.
“The number of homes listed for sale is sitting at around the highest levels we’ve seen in a decade,” Gill said.
Jo Vadillo, founder of Advocate Property Services, agreed that the rising inventory will benefit upgraders.
“There’s more stock coming available in the latter half of 2025... If you’re looking to upgrade your property, there's going to be more opportunities out there,” Vadillo said.
Moore added, “We’re probably going to see people upgrading sooner than they might have otherwise chosen to on the back of that big increase in home prices we’ve seen in recent years, particularly in strong markets like Brisbane and Perth.”
Getting financially prepared is crucial.
Scott Duncan (pictured right), home lending specialist at CommBank, suggested starting with pre-approval to act quickly once the right property hits the market.
“A powerful tool would be to get pre-approval quickly, so you’re quick to market and hit the ground running,” Duncan said.
Beyond interest rates, he recommended looking at loan features like offset accounts to reduce interest over time.
“It’s not just about the rates,” Duncan said. “Having an experienced lender behind you can make all the difference.”
Two common strategies for financing an upgrade include using built-up equity and considering a bridging loan.
“A bridging loan will allow you to potentially purchase a property before you've sold your existing one, and that may give you a competitive edge when trying to secure the sale,” Duncan said.
For buyers ready to take advantage of 2025’s changing market, Vadillo advises doing the groundwork.
“Keep an eye on the areas you’re looking to buy into,” she said. “Go to some of those open homes, attend the auctions and have a really strong understanding of what your budget’s going to allow you to buy."
Between greater borrowing power, more stock, and supportive lending options, upgraders who plan ahead and act strategically could find 2025 is the perfect time to make their move.
