Australia Housing Market 2025–26: Prices, Demand & Rates

Housing Market Trends: Prices & Demand

Australia’s housing market continues to be one of the most talked-about parts of our economy. Buyers, investors and families all want to know: Where are prices heading? Is demand rising or falling? What does this mean if you’re looking for a home or considering refinancing?

As reliable mortgage brokers at Ask Financials, we simplify the clutter of complicated information such as Christopher's Housing Boom and Bust Report and the current National Trends into practical, everyday terms for Australians. Our focus goes beyond simply assisting clients obtain home loans; we want to assist our clients in creating family wealth through intelligent property choices.

Where Prices Are Headed in 2025–2026

One of the key market forecasts in Christopher’s annual report shows a mixed national picture. In 2025, the national average for housing prices was expected to rise modestly between 1% and 4%, under the scenario of rate cuts and continued strong population growth.

However, this forecast isn’t the same in every city:

• Perth was tipped to lead with strong gains of 14–19%.

• Brisbane was expected to stay buoyant, again gaining around 9–14%.

• Sydney and Melbourne, on the other hand, were forecast to see more moderate price movement, with some areas potentially falling slightly before rising again.

Put simply, the national housing market isn’t “boom or bust” everywhere; it’s regional and driven by local supply and demand dynamics. This is consistent with broader market observations showing strong price momentum in cities like Brisbane and Perth, while Sydney and Melbourne move at a steadier pace.

Why Demand Remains Strong

While price prediction/responses may vary, buyer demand remains strong across much of Australia, particularly for those looking to purchase their first home. In fact, recent industry research indicates that 88% of Mortgage Brokers expect the demand from first home buyers to increase over the next few months.

This demand is being supported by:

• Government initiatives, particularly those that provide support for first home buyers through programs like the First Home Guarantee, have helped to stimulate demand from buyers by enabling eligibility for purchase with as little as a 5% deposit.

• In general, moving forward, with the RBA cutting interest rates in 2025, further stimulus will have been created to fuel further buyer enthusiasm and continue to support the growth of property values.

In Australia, the buying of homes today is less about "buying a home" and more about wealth creation. Property is still considered one of the best long-term investments to build equity as long as it is undertaken in conjunction with good mortgage strategies. You can also consider refinancing with a better interest rate and leveraging investment opportunities.

What’s Driving Supply & Affordability Challenges

As with the demand, challenges of supply and affordability continue to be one of the largest aspects that contribute to the overall cost of housing in our major cities. Supply continues to be a barrier and constraint of the overall demand in the Australian property market; many researchers and many reports tell us that Australia is not building enough homes to match the rapid population growth, leading to limited options for homebuyers and placing upward pressure on property prices in many of our fastest-growing cities.

For buyers, that means:

• Less competition for listings, especially in affordable segments.

• More need for strategic planning before entering the market.

• A greater focus on suburbs with emerging value rather than traditional hotspots.

At Ask Financials, we assist our clients in meeting the challenges of their loan possibilities by identifying various ways to meet their borrowing limits, and also by identifying suitable places or methods to end up achieving their required financial outcomes.

Interest Rates, Mortgage Strategy & Your Position

One of the most important themes identified by the Boom and Bust Report is how any changes of even small magnitude in the cost of borrowing can drastically change both the level of demand and the amount of capital needed to finance any real estate transaction.

The key to maximising your borrowing potential and placing yourself in the best position to achieve the financial outcome you desire is to plan your future purchases for the optimal times and understand the limits of your ability to borrow.

For example:

• A 0.25–0.50% rate cut can boost buyer confidence and increase demand, potentially pushing prices up.

• Even when prices are steady, falling rates often improve loan affordability, giving buyers more scope to enter the market sooner.

This is why mortgage strategy matters. A home loan isn’t just about the monthly repayment; it’s about how it fits your broader wealth plan. That’s why we encourage all our clients to consider:

Whether they can lock in a lower rate
When refinancing makes sense
How to structure repayments for long-term benefit
How home equity can support future investment

For personalised guidance tailored to your situation, reach out to Ask Financials for a free consultation through our website.

What This Means for You as a Buyer or Investor

If you're interested in purchasing your first home, up-sizing, or investing in property, please consult with a highly qualified mortgage broker who can assist you with all aspects of the mortgage process, including ongoing support and advice throughout your home-buying or investment journey.

If you’d like help navigating today’s housing market with confidence, we’re here to help. Stay updated with market insights, mortgage tips and financial strategies. You can call us on 0433 944 055 and follow our Instagram and LinkedIn as well. At Ask Financials, we help you make smarter mortgage decisions that support family and future wealth.