New data from a property transaction service provider paints a fascinating new picture, challenging many of the prevailing narratives about the Australian property market.
InfoTrack’s latest “State of Real Estate” report for 2025 shows that while concerns about property prices and interest rate levels are increasing, nearly half of buyers and sellers say these factors played no real role in their decision to buy or sell a property.
The company’s Chief Executive says the report, based on responses from 130,000 buyers and sellers nationwide, shows “a confident, equity-strong cohort driving the majority of property activity.”
However, Lee Bailie says affordability pressures are continuing to “reshape what and where Australians are buying” in residential real estate.
The details
InfoTrack is a provider of electronic services to legal and real estate firms, so the State of Real Estate report spends a lot of time looking at the experience of people who took part in property transactions and the level of trust they place in conveyancers, agents and mortgage brokers.
Only a third of respondents described their property journey as “smooth”, leaving a clear majority grappling with a range of challenges.
When asked to list these “challenges”, property prices came out on top, with 27% saying affordability remained their biggest single obstacle.
This is up 6% from the previous year, which InfoTrack says “marks a growing affordability crisis, particularly for buyers navigating cost-of-living pressures and competitive markets.”
The State of Real Estate 2025 report says these affordability pressures often caused a lot of stress and “an environment where speed often trumps certainty, and considered choices give way to pressured ones.”
69% of buyers said price influenced where they purchased, while 54% reported that property prices had a significant or major impact on their decision to buy or sell.
35% of buyers said property prices also compromised their ability to purchase their preferred property type.
Nevertheless, the InfoTrack data also shows that 46% (or just under half) of participants said property prices played little or no role at all in their decisions to buy or sell.
Interest rates
This divide between a cohort stressed about property transactions, making compromises on where and what they buy, and a large group that are seemingly impervious to soaring property prices was repeated when it came to interest rates.
“Despite ongoing rate volatility, 45% of buyers and sellers said interest rates had no impact on their decisions, challenging the commonly held belief that (interest) rates are the dominant barrier to property activity,” InfoTrack’s report says.
“While 29% reported being significantly or considerably affected, the data points to a broader trend of financial adaptability, with many Australians proceeding confidently with their plans despite economic uncertainty.”
For those who said the current (relatively high) interest rate climate affected them, 43% cited an impact on their budget, while nearly a third re-evaluated the types of properties they could afford.
“These findings suggest that while affordability pressures persist, the property market is underpinned by a strong sense of determination,” InfoTrack says.
“Australians are not retreating, they’re recalibrating, adapting, and continuing to transact with purpose.”
The take-out
InfoTrack’s data clearly shows that while people have been grappling with high interest rates (particularly after the emergency lows seen during the Covid-19 pandemic) and continuing growth in property prices, Australians aren’t giving up on the dream of home ownership.
They’re adjusting their budgets and in many cases, adjusting the type of property they are targeting and the location where they buy.
This might mean a young homebuyer in an expensive market like Sydney opting for an apartment instead of a house, or a couple in Brisbane opting to move further from the city to afford a reasonable-sized house where they can start a family.
The data clearly shows there is also a substantial cohort of property buyers - possibly cashed-up Baby Boomers or Gen Xers - who are completely impervious to prices or interest rates.
This is probably because they have built up substantial equity in their existing homes over a long period of time and are either trading up or downsizing or gifting large amounts of money to younger relatives.
Many of the property transactions they are involved in will be cash - with no finance involved.
The take-out is clear:
The InfoTrack data looked at property experiences during a period which included the highest interest rates in 13 years.
There have been three RBA interest rate cuts so far in this easing cycle; in February, May and August 2025.
This is only going to encourage more Australians to enter the property market.
However, the quickening pace of home price growth and more competition for a small pool of properties is going to mean larger numbers of people having to compromise on dwelling types and location, as they pursue the Great Australian Dream of home ownership.