March Housing Market Update: What You Must Know, Need to Know, and Should Watch Closely

The latest CoreLogic report just dropped, and it’s revealing more than just numbers.

It’s showing us where the market is shifting—and where the opportunities and risks lie.

These insights aren’t just headlines; they’re the conversations, strategy sessions, and workshops I’m leading with clients across housing, construction, and real estate.

The question isn’t just what’s happening—it’s what do you do next?

The Big Picture

• Australia’s residential real estate market is still worth $11.2 trillion. Housing remains the single biggest store of wealth.
• National home values edged up 0.3% in February but dipped -0.1% over the rolling quarter.
• Regional areas are outperforming capital cities—up 1.0% vs. -0.4% over three months.
• The rental market is cooling—up 4.1% over the year but slowing.
• The cash rate just dropped by 25 basis points, easing mortgage pressure slightly.

So, what does this mean for you?

For Property Developers & Builders:

• Construction costs remain sticky, but demand isn’t surging. New home approvals rose 6.3% in January, led by medium-to-high-density builds.
• Investors are holding back—lending to them fell to 37.2% of total loans, down from a recent high of 38.8%.
• If you’re in regional markets, you’re in luck. That’s where the price growth is happening.

Developer takeaway: It’s not boom time, but there are openings. If you’re not planning for shifting demand, you’re already behind.

For Strata & Property Managers:

• Vacancies are lasting longer (42 days on market)—expect potential levy payment delays and tighter sinking fund planning.
• Discounting is creeping up (3.6%)—owners selling at a loss may push back on strata levies and maintenance costs.
• Rental market is slowing (4.1% rise, but easing)—landlords may hesitate on upgrades, while owner-occupiers expect more value.
• More high-density approvals (6.3% jump)—competition from newer buildings means older properties need reinvestment to stay attractive.
• Rate cuts may ease pressure (down 25 basis points)—but financial planning for major works remains critical.

Strata takeaway: If your building isn’t adapting, it’s losing value. Cost control, maintenance, and desirability are the battlegrounds.

For Real Estate Agents & Investors:

• Clearance rates are rebounding—up to 63.7%, nearing decade averages. Sellers are adjusting to the new reality.
• Vendor discounting is creeping up—from 3.5% to 3.6%. Buyers are negotiating harder.
• Affordability is the elephant in the room. First-home buyers still made up 29.2% of owner-occupier loans, above the decade average. They’re active, but the cost barrier remains high.

Real estate takeaway: Sellers need sharper pricing. Buyers have leverage. Investors must rethink rental growth assumptions.

The Foresight Bit—Where’s This Heading?

• The cooling rental market suggests rental yields may soften, affecting investor appetite.
• If rates continue to drop, expect a second-half 2025 market rebound—but it won’t be across the board.
• Regional markets could take the lead. The exodus from cities during COVID wasn’t a blip. It’s a structural shift.

Future takeaway: The winners will be those who read the signals, not just react to the data.

Next Steps—Making Sense of This for Your Business

• Developers & Builders: Is your pipeline aligned with actual demand, or are you building for yesterday’s market?
• Strata Managers: Is your building sinking fund and maintenance plan keeping up with shifting market realities?
• Investors & Agents: Are your pricing and marketing strategies adapting to the new buyer-seller dynamic?

These are some of the conversations I’m having with industry leaders right now—not just about what’s happening, but how to position for what’s next and beyond.

We're not predicting the future; we're preparing for it.

If you need to get ahead of these shifts, let’s talk.

Morris Misel is a global business futurist helping industries anticipate, adapt, and act on what’s next.

From housing and real estate to construction, finance, and beyond, he works with leaders across 160 industries, turning uncertainty into opportunity.

Heard by millions each year in the media and onstage, he brings 30+ years of global experience translating complex future shifts and possibilities into practical strategies.

If your industry is facing change, he’s the one helping you stay ahead of it.

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