Rate hikes and soaring fuel prices aren\u2019t dampening home buyer enthusiasm, with a strong majority of Aussies still believing the time to buy is now. We look at why home-buying sentiment remains so high.<\/b><\/p>\n
Petrol prices have been stealing the headlines lately. But behind the scenes, Aussie homes have been notching up fresh gains.<\/p>\n
Over the past year,\u00a0home values rose 9.9% nationally<\/a>\u00a0\u2013 the fastest 12-month growth since June 2022.<\/p>\n And despite the current fuel crisis and\u00a0two rate hikes in 2026<\/a>, plenty of buyers are expecting values to climb higher.<\/p>\n A recent Westpac-Melbourne Institute survey found \u201ca clear\u00a0majority of consumers still expect (home) prices to rise<\/a>\u201d over the next year. Only around one in ten think values will fall.<\/p>\n These expectations of price growth could be behind Westpac\u2019s finding that 83% of Australians think now is the time to buy.<\/p>\n Buying a home is something most of us only do a few times in our life. It\u2019s a very personal decision and a big commitment, so the \u2018right\u2019 time for you to buy is when you feel ready.<\/p>\n That\u2019s why we encourage you to speak with us, so you can feel confident you are financially ready to become a home owner.<\/p>\n However, if you are holding out in the hope that prices will fall, you could be left disappointed, and potentially end up paying more in the future.<\/p>\n Yes, higher interest rates are likely to impact the property market.<\/p>\n ANZ, for example,\u00a0expects price growth to slow<\/a>.<\/p>\n But slower growth does not mean a price slump.<\/p>\n ANZ\u2019s forecasts suggest capital city home prices will rise 2.8% in 2026, followed by 2.1% growth in 2027.<\/p>\n But big differences are anticipated across each capital \u2013\u00a0 from dramatic price growth to modest softening, depending on location.<\/p>\n As a guide, prices are expected to rise a whopping 12.3% in Perth this year, 9.7% in Brisbane, and 8.0% in Darwin.<\/p>\n Values are also expected to track higher in Adelaide (up 5.75%), Hobart (3.7%) and Canberra (1.6%).<\/p>\n Sydney and Melbourne may see prices soften by -0.7% and -1.7%, respectively, this year.<\/p>\n But that\u2019s far from a significant drop, and both cities are forecast to see prices rise by at least 2.6% in 2027.<\/p>\n The reason property prices could defy higher interest rates is simple: demand outweighs supply.<\/p>\n The number of homes listed for sale is super-tight right now.<\/p>\n New listings across most state capitals<\/a>\u00a0are lower than a year ago.<\/p>\n And while\u00a0more new homes are being built<\/a>, construction levels simply\u00a0aren\u2019t keeping pace with population growth<\/a>, NAB says.<\/p>\n A shortage of homes for sale isn\u2019t deterring buyers.<\/p>\n Cotality estimates\u00a0close to 560,000 homes have been sold so far in 2026<\/a>. That\u2019s almost 6% higher than the 5-year average.<\/p>\n Moreover, NAB reports that\u00a0home loan lending \u201crose sharply\u201d<\/a>\u00a0in the second half of 2025, with home buyers, rather than investors, being the driving force in the mortgage market in the final quarter of the year.<\/p>\n It goes to show that rate hikes and uncertainty in the Middle East are no match for home buyer enthusiasm.<\/p>\n According to realestate.com.au, some first home buyers and upgraders see slower price growth as\u00a0a window of opportunity<\/a>, with auction demand still \u201chot\u201d in parts of the market that are popular with first home buyers.<\/p>\n No one knows for sure how home prices will move in the future.<\/p>\n But it\u2019s fair to say plenty of home buyers look back on the price they originally paid for their home, and breathe a sigh of relief that they purchased when they did.<\/p>\nThe right time to buy a home<\/b><\/h3>\n
Home values nationally forecast to climb 2.8% this year<\/b><\/h3>\n
What\u2019s driving values higher?<\/b><\/h3>\n
Buyers are seizing opportunities<\/b><\/h3>\n
Call us to know if it\u2019s your time to buy<\/b><\/h3>\n