Is 2026 still a smart time to buy? Here’s what the experts say

The Australian property market has experienced a significant shift in 2026.Property prices have fallen in many markets, driven by multiple cash rate hikes, Federal Budget tax reforms, geopolitical tensions, and affordability constraints.While Sydney and Melbourne have led the downturn, smaller capitals like Brisbane, Adelaide and Canberra are also seeing values decline.So, is now still a smart time to buy?For first-home buyers, knowing when to jump in can be confusing, but many experts say it’s less about timing the market and more about being financially ready.Many first-home buyers are weighing up current market conditions to consider if now is a smart time to buy.Investor tax changes have an impactREA Group Senior Economist Anne Flaherty said current market conditions had dampened demand, but the fundamentals were in place to support a gradual recovery.“Higher interest rates, affordability constraints and recent housing tax changes have weakened buyer demand and reduced overall market activity,” she said.“Despite the current correction, tight rental markets, strong population growth and an ongoing housing undersupply are likely to support recovery over the long term.”The May Fed...