Oli Property Market Outlook | February 2026

Cotality Home Value Index is out - what does that means for house prices and your property investment strategy?

Despite expectations that interest rates may rise rather than fall in 2026, Australian house prices are continuing to increase. For new and growing investors, this signals that well-chosen property, remains a strong long-term opportunity.

Here’s what’s happening in the market, and what it means for your 2026 outlook.

House Prices Are Still Rising - Even With Rate Hike Talk

Across most of Australia, property prices are continuing to climb. While rate hike expectations can slow buyer sentiment in the short term, strong demand and limited supply are still pushing prices upward, especially in growth markets.

For investors, this highlights the importance of focusing on fundamentals: population growth, housing supply, and long-term demand, rather than short-term interest rate movements.

2026 Outlook - Home Values Continue to Rise Nationally

Australia’s Home Value Index rose by 0.8% in January, accelerating from December’s 0.6%. While this growth is softer than late-2025 highs, it shows the market remains resilient even as economic expectations shift.

For newer investors, this reinforces the value of entering the market with a long-term mindset rather than trying to time short-term fluctuations.

Annual Growth Is Improving

Because property prices were weaker a year ago, even modest monthly increases are now lifting annual growth figures, including in Sydney and Melbourne.

With household spending and broader economic activity remaining solid, the property market is showing more balance than many headlines suggest.

Auction Results Signal Buyer Confidence in 2026 Outlook

Early auction results in Sydney and Melbourne show clearance rates improving from December levels, after a softer Spring period. This suggests buyer confidence is stabilising, an encouraging sign for investors considering entry in 2026.

What This Means for Investors in 2026

While house price growth may stabilise or ease later in the year, land-constrained markets are likely to remain resilient. In areas where new supply is limited, any market softening tends to take longer to impact land values.

For first- and second-time investors, 2026 reinforces a key lesson:

Strategic location selection and long-term thinking matter more than short-term market noise. Reach out to our team today to discuss your investment strategy.

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