Australia’s Property Market in 2026

Australia’s property market has turned. After roughly three years of almost uninterrupted growth, house and unit prices across the combined capital cities fell together in the June 2026 quarter for the first time in more than three years, according to the latest House Price Report from Domain. This analysis looks at how the market got here, where prices sit now, and why the role of a mortgage broker matters more in a falling market than it did in a rising one.

The 2022 Downturn, the Recovery, and the 2026 Turn

The Australian housing market fell in 2022, with a noticeable dip in prices and a decline in market confidence driven by rising interest rates and inflation. It then recovered strongly and kept climbing for about three years. That run has now ended. Three cash rate increases in the first half of 2026 have materially reduced how much buyers can borrow, while cost-of-living pressures, weaker consumer sentiment and changes to property tax policy have made buyers more cautious, more price-sensitive and more selective. In both directions the same thing has been true: homeowners and buyers searching for ‘mortgage brokers near me’ want someone who can tell them what they can actually borrow in the conditions of the day.

Domain’s House Price Report: What the June 2026 Quarter Showed

The Domain House Price Report is the clearest quarterly read on where prices actually sit. The December quarter 2023 edition was the point at which the recovery from the 2022 downturn became undeniable, and it became a valuable resource for mortgage brokers and financial advisers, especially in cities like Sydney where demand for ‘Sydney mortgage broker’ services rose sharply. The June quarter 2026 edition marks the opposite turning point: the first time in more than three years that house and unit prices across the combined capitals have fallen together, ending the longest uninterrupted run of quarterly growth since 2012-15.

The June 2026 downturn is led by Sydney, Melbourne and Canberra, where both house and unit prices declined over the quarter. Sydney house prices fell 3.3 per cent, Melbourne 3.1 per cent and Canberra 2.5 per cent. Other capitals still recorded house price gains, but momentum slowed sharply in Brisbane, Perth, Hobart and Darwin. Adelaide was the only market where house price growth accelerated. The figures that follow show where the market stood at the end of 2023, near the start of the upswing that has now run its course.

In the forefront of median house price growth in 2023 was Adelaide, showcasing a remarkable 12.7 percent increase from the previous year, outpacing Perth with an 11.9 percent rise and Sydney with a 10.6 percent hike. Contrasting this upward trend, Canberra, Hobart, and Darwin experienced declines in their median house prices by 4.6 percent, 2.5 percent, and 1.2 percent, respectively.

By the end of 2023, Sydney emerged at the forefront with record-setting median house prices, reaching a peak of $1,595,310. This was closely followed by Brisbane at $888,285, Adelaide at $875,034, and Perth at $742,390. Additionally, the unit prices in Canberra, Brisbane, and Adelaide also reached new heights, with figures standing at $625,597, $524,202, and $484,407, respectively.

Dr. Nicola Powell, the Domain Chief of Research and Economics, said at the time: “Despite initial expectations of high interest rates, stretched affordability, and cost-of-living pressures capping property prices in 2023, factors such as the shortage of new housing, rising construction costs, an expanding population, and a strained rental market have continued to fuel the demand for housing.”

The 2023 Recovery: A Detailed Overview

The year 2023 marked a significant recovery phase for most Australian capitals, witnessing a rebound in both house and unit prices. Mortgage brokers, particularly in Sydney and Adelaide, found themselves increasingly busy, assisting clients in securing favourable home loans amidst the rising market. The surge in online searches for ‘mortgage brokers near me’ highlighted the growing need for expert local guidance in home loan procurement.

The Surge in demand for Mortgage Brokers near me

As the market recovery gained momentum, there was a notable increase in online searches for ‘mortgage brokers near me’. Homebuyers sought out local experts who could offer personalised advice and assistance in the complex process of securing a home loan. This trend underscores the importance of local knowledge and expertise in the mortgage industry.

Sydney’s Market Turns: What It Means for Sydney Mortgage Brokers

Sydney kept climbing well past 2023 and set a fresh record early in 2026, but the June 2026 quarter broke the run. The median Sydney house price fell 3.3 per cent, or $59,884, to $1,733,891 – the first quarterly decline in three and a half years and the largest fall of any capital city, taking values back to where they sat in June 2025. Units held up better, easing 1.5 per cent to $849,068. Selling conditions have shifted with them: the auction clearance rate is at its lowest level since April 2020 at 48 per cent, withdrawn auctions hit a record 29.3 per cent, homes are taking longer to sell and discounting has increased. For buyers that means more negotiating room than they have had in years, and it makes the pre-approval work a ‘Sydney mortgage broker’ does more valuable rather than less, because knowing your real borrowing limit is what lets you act while other buyers hesitate.

Adelaide and Perth’s Market Growth: The Impact on The Housing Market

Adelaide and Perth are the two markets still running hot. Adelaide house prices rose 4.8 per cent, or $51,186, in the June 2026 quarter to a record $1,125,070 – the strongest quarterly increase in almost three years and the largest gain of any capital city – taking annual growth to 16.0 per cent and pushing Adelaide past Melbourne to become the fourth most expensive capital for houses. Perth rose 1.0 per cent to a record $1,183,108, with annual growth of 22.5 per cent, still the strongest of any capital. In these cities the job of a mortgage broker is about moving decisively and borrowing sensibly at prices that are still climbing, rather than waiting for a discount that is not coming.

The Importance of Choosing the Best Mortgage Broker

In a market that is turning, the importance of selecting the ‘best mortgage broker’ becomes more pronounced, not less. A proficient broker can significantly influence the loan terms a buyer receives and the overall property purchasing experience. They offer invaluable assistance in navigating the myriad of home loan options available, ensuring clients make well-informed decisions.

The Crucial Role of Home Loans and Mortgage Broker in a Shifting Market

Home loans are the mechanism that decides who can buy and at what price. Through the upswing, the availability of home loans on workable terms sustained strong demand for housing despite high interest rates and cost-of-living pressures. In a falling market the same mechanism works in reverse: when borrowing capacity contracts, so does what buyers are able to bid, and that is a large part of why prices have turned.

The Dual Impact of High Interest Rates on Home Loans

High interest rates cut both ways. They constrain borrowing capacity, which is now the dominant force pulling prices down in Sydney, Melbourne and Canberra, while at the same time pushing some buyers towards more affordable segments and cities, which is part of why Adelaide, Perth and Brisbane have kept rising. Either way, the amount a lender will actually advance is the number that decides the outcome, and that is where the expertise of a mortgage broker becomes indispensable.

What’s Ahead: The Outlook From Here

The Reserve Bank left the cash rate target unchanged at 4.35 per cent at its meeting on 11 August 2026, after three increases in the first half of the year. The Board’s own assessment is that inflation is still too high and is not expected to return to the middle of the 2-3 per cent target range until early 2028, and it has said plainly that it will keep doing what it considers necessary, including increasing the cash rate again if upside risks materialise. Anyone budgeting around a near-term rate cut is planning around something the Reserve Bank has not signalled. Mortgage brokers need to keep clients focused on what their borrowing capacity actually is at today’s assessment rates, particularly in high-demand areas like Sydney, where the role of a ‘Sydney mortgage broker’ remains crucial.

Addressing Future Challenges: The Pivotal Role of Mortgage Services

The Australian property market will keep facing pressure on mortgage affordability alongside broader economic strain. The June 2026 quarter showed those pressures playing out in the mechanics of the market, not just the price line: total listings are rising, homes are taking longer to sell, discounting is increasing and vendors are reassessing their expectations, all of which shifts negotiating power towards buyers. Domain’s own reading is that the broad-based upswing of the past three years has ended, replaced by a more fragmented and uneven market where results depend on local conditions, affordability and buyer confidence. That is exactly the environment where the ‘best mortgage broker’ earns their keep – not by chasing the lowest advertised rate, but by getting your borrowing capacity and loan structure right before you go looking. The full Domain House Price Report for the June 2026 quarter sets out the detail city by city.

In-Depth Conclusion: Reflecting on Australia’s Changing Market and Mortgage Services

Australia’s property market has moved from a three-year upswing into a downturn, with Sydney, Melbourne and Canberra leading prices lower while Adelaide, Perth and Brisbane hold on to their gains. As the market evolves, the role of mortgage services, including home loans and mortgage brokers, remains integral. The expertise of ‘Sydney mortgage brokers’ and the search for the ‘best mortgage broker’ will continue to be critical for navigating a property landscape that is now moving in different directions in different cities. Reach out to us today at startnow@sorenfinancial.com and lets discuss your next step.