February’s interest rate hike and the suggestion of more to come has not deterred the confidence of Australians in the housing market, with a majority believing property prices in their area will continue to grow this year, according to new data.
New research from Finder, provided exclusively to The Daily Telegraph, has revealed that 66 per cent of Aussies believe property prices will rise in their surrounding area in 2026.
Almost half (49 per cent) of those surveyed predicted a modest increase in prices, while 17 per cent believe ‘significant’ growth is on the horizon in 2026.
Thirty per cent expect prices to hold firm, while a minute four per cent anticipate a price drop.
Where Aussies expect house prices to go in 2026. Source: Finder
Sydneysiders generally expect a slight increase in house prices. Picture: iStock
In Australia’s most expensive state, 13 per cent of respondents in NSW predicted prices to significantly rise.
One in three predicted prices to remain steady, while 47 per cent expected a minor increase.
NSW also had the highest number of doubters, with six per cent – the most of any state – predicting prices would ‘somewhat decrease’.
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In QLD, over a quarter of people predict high price growth in 2026. Picture: iStock
Over one in four Queenslanders (26 per cent) predict a strong increase this year, while 49 per cent expect prices to increase more modestly.
At the very least, 22 per cent expected prices to stay where they are, while only three per cent predict any sort of decline.
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Victorians are less optimistic about their house prices than other Aussies. Picture: Getty Images
Only 10 per cent of Victorians expect local prices to significantly jump.
Just under half (49 per cent) predicted prices to increase slightly while 35 per cent expected properties to hold their value this year — the highest of any state in this category.
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Over half of South Australians surveyed expect a property price rise
In South Australia, over one in five (21 per cent) expect a major jump in prices this year.
Fifty-one per cent believe prices will ‘somewhat increase’, while a quarter of South Aussies think prices will hold this year.
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West Australians had the highest optimism in their market of any state. Picture: iStock
West Australians were the strongest believers in their market, with 28 per cent believing that property prices will ‘significantly increase’ over the coming year.
Not one West Aussie predicted a decline in prices this year, while 47 per cent said prices would somewhat increase.
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A majority of Aussies have confidence in house prices growing in their area. Picture: Rohan Kelly
Finder head of consumer research Graham Cooke said Australians were continuing to back housing as their safest long-term bet.
“Owning a home remains the primary wealth goal for most Australian households,” he said.
“The data points to a nation doubling down on property, with expectations of further gains drastically outweighing fears of a downturn.”
Mr Cooke said most Australians still believe values will grow “even after years of rapid price growth and higher interest rates”.
“There’s a strong belief that tight supply, population growth and sustained demand will keep pushing prices up,” he said.
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Finder’s Graham Cooke. Picture: Supplied
Although, Mr Cooke said sentiment can shift quickly.
“The GFC didn’t affect Australia significantly, which is why Aussies are still very optimistic,” he said.
“However, interest rate movements, economic shocks or overseas conflict could alter the trajectory.
“House prices are not guaranteed to only go up.”
Mr Cooke noted that online resources allowed buyers to compare interest rates online before taking out a loan or refinancing.
“As house prices continue to rise, it’s never been more important to get the best deal possible on borrowing costs,” he said.
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