After a year of soaring prices and fierce competition, Australia\u2019s housing market is finally slowing down. The latest data shows a clear easing in price growth as buyers hesitate, costs stay high, and affordability remains out of reach for many. It\u2019s not a collapse \u2014 more like a deep breath after a long sprint.<\/p>\n\n\n\n
The newest figures from CoreLogic\u2019s national home value index show property prices rising by 0.4% in December, the smallest monthly increase since late 2022. Over the course of 2025, prices still climbed about 7%, but momentum clearly faded toward the year\u2019s end.<\/p>\n\n\n\n
While Sydney and Brisbane managed modest gains, Melbourne and Hobart slipped slightly. Regional areas held steady, showing that demand for lifestyle properties and relative affordability is still strong outside the capital cities.<\/p>\n\n\n\n
The slower pace reflects a market adjusting to the limits of what buyers can handle. Higher borrowing costs, tight household budgets, and a sense that prices can\u2019t keep climbing forever have all cooled enthusiasm.<\/p>\n\n\n\n
With the Reserve Bank of Australia\u2019s cash rate sitting at 4.35%, the impact of earlier rate hikes continues to ripple through the economy, explains ABC News<\/a>. Many homeowners are still adjusting to larger mortgage repayments, while potential buyers find it harder to secure loans big enough to enter the market.<\/p>\n\n\n\n Even with inflation easing, the pressure on household finances is unmistakable. The outlook for 2026 depends largely on what happens next with interest rates. Some economists think the RBA could start cutting later this year, but that would depend on further signs of cooling inflation and slower spending.<\/p>\n\n\n\n Until then, the housing market remains in a holding pattern \u2014 not falling, but no longer racing ahead either.<\/p>\n\n\n\n The national figures hide sharp differences between cities. Sydney\u2019s median house price is still well above $1.4 million, while Adelaide and Perth continue to perform strongly thanks to limited housing supply and solid local demand.<\/p>\n\n\n\nUneven Growth Across the Country<\/h2>\n\n\n\n