{"id":108427,"date":"2026-01-03T08:31:00","date_gmt":"2026-01-02T21:31:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=108427"},"modified":"2026-01-02T21:51:25","modified_gmt":"2026-01-02T10:51:25","slug":"house-prices-predicted-to-jump","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/house-prices-predicted-to-jump\/","title":{"rendered":"Bad News for Buyers: House Prices Predicted to Jump Another 5% This Year"},"content":{"rendered":"\nFor Australians hoping house prices might finally cool this year, the outlook isn\u2019t promising. Experts predict another round of gains in 2026, with national values expected to rise by at least 5% \u2014 proof that the property market is still defying gravity despite high interest rates.\n\n\n<h2 class=\"wp-block-heading\">House Prices Defy the Odds<\/h2>\n\n\n\n<p>According to new data and forecasts cited by <a href=\"https:\/\/www.theguardian.com\/australia-news\/2026\/jan\/02\/australian-house-prices-expected-to-rise-at-least-5-in-2026-after-jump-last-year\" target=\"_blank\" rel=\"noopener\">The Guardian<\/a>, the national property market remains stubbornly strong after climbing nearly 9% in 2025. Analysts expect prices to rise by a further 5 to 7% over the next 12 months, fuelled by tight housing supply, population growth, and ongoing rental shortages.<\/p>\n\n\n\n<p>The resilience of the housing market has surprised many, especially given that interest rates remain high and affordability continues to worsen. Yet, even with borrowing costs biting, demand for homes hasn\u2019t cooled as much as expected.<\/p>\n\n\n\n<p>Economists point to a lack of housing stock as the main reason prices keep defying gravity. Construction delays, high building costs, and limited new developments have kept the supply side weak \u2014 meaning buyers are still competing fiercely over what\u2019s available.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/TomorrowsPapersToday?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#TomorrowsPapersToday<\/a> The Guardian<br>Australian house prices are expected to rise by at least 5% in 2026 after last year&#39;s jump.<br>By Jonathan Barrett<a href=\"https:\/\/t.co\/c5QIRtUMxR\">https:\/\/t.co\/c5QIRtUMxR<\/a><br>For more papers visit our website at<a href=\"https:\/\/t.co\/6eo1mbiEHg\">https:\/\/t.co\/6eo1mbiEHg<\/a> <a href=\"https:\/\/t.co\/LfUx6h2CYf\">pic.twitter.com\/LfUx6h2CYf<\/a><\/p>&mdash; The Sentinel Current (@sentinelcurrent) <a href=\"https:\/\/twitter.com\/sentinelcurrent\/status\/2006814836538196172?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 1, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Capital Cities Lead the Way<\/h2>\n\n\n\n<p>The price growth won\u2019t be uniform across the country. Sydney, Perth, and Adelaide are expected to lead the gains, with property values in some suburbs already rising by as much as 10% annually. Melbourne may see more moderate growth as demand softens slightly, while Hobart and parts of regional Australia could experience flatter conditions.<\/p>\n\n\n\n<p>Despite the regional variation, the overall trend remains upward. Analysts believe that without a significant boost to housing supply or a major shift in migration policy, prices will continue to climb through 2026.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Affordability Concerns Grow<\/h2>\n\n\n\n<p>For <a href=\"https:\/\/en.econostrum.info\/au\/first-time-buyers-face-a-bigger-challenge\/\" target=\"_blank\" rel=\"noopener\">first-home buyers<\/a>, the situation looks increasingly bleak. Rising prices and high interest rates have pushed the average national mortgage repayment to its highest level on record. According to analysts, the portion of income required to service a new home loan is now well above the long-term average.<\/p>\n\n\n\n<p>Housing affordability has become a political flashpoint once again, with growing pressure on governments to address the crisis. Critics argue that existing incentives, such as first-home buyer grants and shared equity schemes, are doing little to close the gap between wages and property prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Outlook for the Year Ahead<\/h2>\n\n\n\n<p>While experts expect slower growth compared to last year, none predict a downturn. A modest increase in listings and a possible interest rate cut later in 2026 could help balance conditions slightly, but not enough to reverse the upward trend.<\/p>\n\n\n\n<p>For now, the message is clear: the Australian property market is showing no signs of giving up its gains. For homeowners, it\u2019s another year of wealth on paper. For aspiring buyers, it\u2019s another year of watching the goalposts move just a little further away.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australia\u2019s house prices are tipped to rise again in 2026, with experts warning the property market is staying strong despite ongoing affordability struggles.<\/p>\n","protected":false},"author":14,"featured_media":108428,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-108427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=108427"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108427\/revisions"}],"predecessor-version":[{"id":108429,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108427\/revisions\/108429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/108428"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=108427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=108427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=108427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}