Welcome to 2026

Most people I have spoken to this week have asked what we see happening in 2026 with local real estate. The end of 2025 brought softer sale prices which has been shown with house prices falling in Sydney by 0.3% in December (PropTrack Home Price Index). We saw the market slow from about August. The October inflation figures rose to 3.8% which resulted in the Reserve Bank stating that 2026 will see possible rising rates or best-case unchanged rates. For our market the lower priced property will remain strong – under $3,500,000. Lots of demand from buyers upsizing and downsizing. The mid-range and prestige property has softened recently; however I feel prices will stabilise this year as there will be less sellers and properties on the market creating a shortage to keep pricing steady. Lastly demand will still be very strong for completely renovated or new houses and apartments. Buyers are aware of the cost and time it takes to build and are more than happy to pay a premium for someone else to do the work.

The following ABC article shares some insights on predicted interest rates movements for 2026 and how that will affect the economy and housing values: https://www.abc.net.au/news/2026-01-06/what-to-expect-from-rba-interest-rates-in-2026-hikes-on-table/106200132?utm_source=abc_news_web&utm_medium=content_shared&utm_campaign=abc_news_web&utm_content=mail 

Yes, we are back showing properties for inspection tomorrow and have auctions booked for early February. If you are not at the beach on Saturday it would be great to see you at one of our viewings.

Best Wishes, 
Jason Guildea