Australia’s housing market is still growing, although higher rates and affordability pressures are clearly starting to weigh on demand.
According to Cotality, the national median property price rose 0.3% in April to a record $940,048.
National prices increased 9.8% over the year to April, although growth over the most recent three months slowed to 1.6%.
Why the market is cooling
Housing momentum had already been easing since late 2025 as affordability and borrowing constraints reduced buyer capacity.
Now, three interest rate rises in 2026 and weaker consumer confidence are adding further pressure.
That’s also showing up in sales activity.
Estimated capital city home sales during the April quarter were:
Where demand is holding up
One of the biggest shifts in the market is where growth is occurring.
Across every capital city, lower-priced properties are now recording stronger growth than premium housing.
That suggests buyers are increasingly focusing on areas where:
What buyers should take from this
The market isn’t moving uniformly.
Conditions are becoming more segmented, which means strategy, location and budget flexibility matter more than ever.
We can help you understand how changing market conditions may affect your borrowing power and property options in the current environment.
