PropTrack Home Price Index - January 2026

National home values increased in January, but a looming rate rise weighed on price growth.

Key findings

• National home prices posted modest gains in January, with price falls in Melbourne, Hobart and Canberra offset by rises elsewhere. Home prices nationally increased by 0.2% over the first month of 2026 to sit 8.4% higher than a year ago.
• This increase brought median home values to a new record of just over $880,000.
• Prices in the combined capital cities were up slightly over the month (+0.1%), while regional areas posted larger monthly gains (+0.3%).
• Home prices in Sydney were up a modest 0.1% in January, after declining a little in December. Melbourne prices declined again, posting their third month of falls, though the declines have been small and prices are only 0.8% off their recent record.
• Adelaide was the best performing capital city again, with home prices jumping a brisk 0.9% in January, contributing to an annual rise of 13.8%.
• Brisbane and Perth prices also continued to increase, recording growth of 0.4% and 0.3% month-on-month, respectively.

Sydney and Melbourne have seen home price growth soften in recent months.

Melbourne has posted three months of modest declines, and while Sydney prices were up in January, they are below their recent peak.

Ample choice for buyers in these cities throughout spring has likely contributed to the softer price growth.

In contrast, Brisbane, Perth and Adelaide have continued to see strong growth, outperforming the larger capitals amid very limited choice for buyers.

Outlook

January is a relatively quiet month for housing markets, with lighter sales volumes, which makes it harder to assess the momentum in home prices.

While conditions were softer in Sydney and Melbourne in recent months, home prices are still likely to head to new highs in 2026, but at a slower pace of growth than in 2025.

Price growth in 2025 was supported by three rate cuts, but a rate rise at the Reserve Bank’s February meeting is now looking likely, with inflation coming in stronger than expected in the second half of 2025.

While the possibility of further hikes may weigh on the market, unemployment remains very low, which will support demand. At the same time, new housing supply remains limited, supporting home prices.