Is Australia’s Housing Market Stabilising in 2026? Latest Data Explained

The Australian housing market in 2026 is a story of resilience, moderation and a transition toward balance after an extraordinary run of growth. National figures still show price rises and strong demand, but the pace of growth has softened and varies widely by region, price segment and market dynamics. 

Understanding whether the market is stabilising and what that really means is critical for buyers, investors and anyone planning their next move in property. 

Ready to explore Australia housing market in 2026? 

Let’s dive into the latest data to break it all down:

Overview: From Rapid Growth to Balanced Conditions

The latest Cotality January 2026 Housing Chart Pack confirms that the Australian residential real estate sector remains enormous and highly valued, with the total market valued at around $12.3 trillion. This accounts for a significant share of national household wealth, far surpassing the combined value of superannuation and listed stocks in Australia.

Despite this size, the pace of growth is showing signs of stabilising:

• National dwelling values rose 8.6% in 2025, one of the strongest annual gains in recent history.
• Quarterly growth slowed to 2.9% in the final quarter of 2025.
• Monthly trends through early 2026 show a softer momentum, particularly in Sydney and Melbourne, where values were slightly softer.

This combination of strong long-term gains but decelerating short-term price growth points to stabilisation rather than collapse.

Source Link:

Additional Key Market Figures (January 2026)

Below are fresh insights from the January 2026 Cotality Housing Chart Pack, including quarterly trends, listing dynamics, sales volume, housing value contribution to wealth and price segment performance:

Source Link:

What This Means for 2026 Trends

These fresh metrics add depth to your Australia housing market in 2026 narrative by showing that:

1. Housing stock remains a cornerstone of wealth

The residential property market in Australia now outweighs both superannuation and listed stocks by a wide margin, highlighting the dominance of housing in personal and national wealth structures.

2. Sales activity remains strong

With 560,000+ homes sold across 2025, transaction volumes remain well above long-term averages, suggesting sustained buyer and investor interest even as price growth moderates.

3. Quarterly growth is still positive

Although monthly momentum eased into early 2026, especially in Sydney and Melbourne, quarterly figures tell a more robust story, with home values still rising almost 3% in the last quarter of 2025.

4. Affordable home segments drive competition

Lower-quartile properties are again growing faster than higher-priced stock, a noteworthy trend for first-home buyers and investor strategies focused on affordable price points.

5. Market tightness remains

Listings remained substantially below historical averages, while days on market remained low, underscoring that supply constraints are a key driver of continued price support.

6. Rental conditions support investors

Rents still grew a solid 5.2% in 2025, reflecting the ongoing pressure in rental markets a valuable data point when discussing yield and total return in Australia housing market in 2026.

What Experts Expect in 2026

Industry sentiment remains generally positive:

• A Cotality survey found 87% of professionals expect dwelling values to rise through 2026, with nearly half forecasting gains above 5%.
• This outlook persists despite affordability pressures and macroeconomic uncertainties.

Some independent forecasts, e.g., KPMG, anticipate 7.7% price growth nationally this year, though results vary greatly by location and property type. 

So, Is the Market Stabilising?

Yes, but in a subtle way.

Rather than a sharp downturn, we’re seeing:

• Strong foundational demand
• More balanced growth rates
• Slowing price momentum in some markets
• Continued rental strength
• Greater regional performance diversity



These are the classic signs of a market transitioning from a high-growth boom to a steadier, more balanced phase, the essence of stabilisation in Australia housing market in 2026.

What It Means for You

Here’s how to think about your next move:

If You are a Buyer

• Study local market dynamics, not only national averages.
• Look at the suburbs with improving supply and shorter days on market.
• Consider long-term affordability trends and lending conditions.

If You are an Investor

• Rental yields and vacancy rates remain attractive in many regions.
• Lower-priced homes and regional areas often deliver better rental cash flow.
• Interest in property continues, but data-driven selection matters more than ever.

Strategic Advice: If you want deep insights, personalised suburb selection and guidance on navigating this stabilising environment, working with an experienced buyer's agent in Australia like PropXperts can make a meaningful difference. Their expertise helps buyers and investors unlock opportunities that broad market trends might overlook, especially in a market as dynamic as this.

Summary

The Australia housing market in 2026 is entering a phase that many experts describe as stabilisation. It doesn’t mean prices are collapsing, it means:

• Growth is slowing but positive
• Regional winners and laggards exist
• Lower-end stock remains dynamic
• Rentals stay strong
• Local data is now more important than ever

In this nuanced market, strategy wins over speculation and informed decisions backed by data are important.

Ready to make smarter property decisions this year?

Connect with PropXperts and start building a strategy backed by real market intelligence.

Disclaimer: This content is intended for general information only and should not be relied upon as financial, property, or legal advice. While reasonable care has been taken to ensure accuracy, market conditions may change without notice. Readers are encouraged to seek independent professional guidance before making any property-related decisions.