Preliminary data show Australia's housing market surged immediately after Labor's key election victory, and analysts say the expected string of slowdowns could lead to the continued trend.

Auction clearance rates rose to 70% in the week after the election from 60% to mid-last month, according to preliminary Cotality data. An auction clearance of 70% or above usually indicates that the seller controls the market.

Nerida Conisbee, chief economist at real estate firm Ray White, attributes some buying enthusiasm to the victory of the Labor Party.

“There is a higher certainty,” she said. “It’s a landslide election, so people feel very confident about the right outcome.”

Analysts predict that house prices will rise faster than expected interest rates for the rest of 2025.

The number of homes for sale is still relatively low, with about 32,000 on Monday, up to 33,000.

"People are still waiting for the outcome of interest rate decisions in May," Irving said.

The Reserve Bank's board of directors lowered its key interest rates on May 20, and the market predicts that reserves will be lowered by November three more times.

The bank's first tax rate since 2020 in February led to a steady increase of 0.6 per cent in home values ​​in Sydney and Melbourne, the amount of Cotality measures, offsetting the price decline recorded at the end of 2024.

Economists expect national value to grow at least 3% in 2025, but could grow 10% in 2025, which helps slow down speed and regular spring sales growth.

These forecasts may be subject to slower recovery rates on purchasers' budgets after household spending data, which surprised forecasters last week for five consecutive months.

However, starting in January, the government is expected to enable Australians to buy their first home with a deposit of only 5% since its plans to expand.

The expected increase in home value, exceeding wages, has the potential to widen the gap in efforts to enter the market between property owners and young tenants.

Both labor and coalition have been criticized by promising policies during the campaign that will drive prices to raise prices and suggest affordability can be addressed through "sustainable" prices, described by independent economist Saul Eslake as a "scam."

Irving said lower house prices are economically viable, but the government promises to rise.

“People do buy housing in a way of thinking, i.e. they will make money from it…and policies can make housing value less (means) change social contracts.”