According to a report by PropTrack, combined capital city home prices are expected to increase by 6-8% in 2026. This growth trajectory suggests that prospective buyers will need to prepare for higher property values and potentially larger financial commitments.
In Sydney, dwelling prices are forecasted to grow by 5-7% over the year, potentially adding over $62,000 to the current median dwelling price of approximately $1.23 million. Similarly, Melbourne's median house price is projected to rise by 6%, reaching around $1.1 million by June 2026.
These anticipated increases are driven by factors such as population growth, limited housing supply, and ongoing demand. For first-time buyers, this environment underscores the importance of strategic financial planning and exploring all available assistance programs.
Government initiatives, such as the First Home Guarantee Scheme, can provide valuable support by reducing the required deposit and offering other incentives. Additionally, staying informed about market trends and seeking professional financial advice can help navigate the complexities of purchasing a home in a rising market.
While the prospect of rising property prices may seem daunting, proactive planning and leveraging available resources can empower first-time buyers to achieve their home ownership goals in 2026.
