Jan 2026 Housing Market Update: What Smart Buyers Are Doing Now

As Sydney-based buyers’ agents, we’re watching a surprisingly strong start to 2026. CoreLogic/Cotality data show national home values up 0.8% in January, keeping annual growth around double-digits. Homeowners are sitting on record equity (the median house price is now above $900K) after eight straight months of rising prices. And despite higher interest rates, demand remains fierce: listings are still well below historical averages and sales have held up.

Source 

• Price rises continue: National values jumped +0.8% in Jan. On an annual basis home prices are about 10% higher than a year ago, reflecting nationwide momentum.
  
• New milestones: The median house price is now over $900K, and housing value is record‑high in most states. In fact, Perth (+2.0% MoM), Brisbane (+1.6%) and Adelaide (+1.2%) led gains in Jan, while growth in Sydney (+0.2%) and Melbourne (+0.1%) has slowed to marginal levels.
  
• Buyer competition: The fiercest bidding is in lower-priced brackets. CoreLogic reports “stronger growth in lower price brackets – especially across capital cities” as first-home buyers and investors chase affordable homes. In other words, more stock at higher prices hasn’t dampened demand – buyers still scramble for deals, especially entry‑level properties.
  
• Listings vs. demand: Don’t be fooled by seasonal stock upticks. Current data show advertised homes are still about 19% below last year’s levels. In practical terms, the scarcity of houses keeps auctions and sales very competitive. In many markets, a solid strategy beats sheer speed – it pays to plan your bidding and price scope carefully.
  

Implications for Buyers

With prices climbing and budgets tightening, our advice is to focus on strategy and value. For example:

• Target value areas: Growth is strongest in cheaper segments, so look beyond headline suburbs. Many buyers are now considering emerging markets or up-and-coming precincts. Our [Who We Work With][2] page shows how different strategies apply depending on your goal, but generally, we’re advising clients to broaden their criteria and find relative bargains.
  
• Leverage interstate trends: Demand from other states continues to support markets like Brisbane and Perth. If you’re open to relocating or investing interstate, recent buyers’ data suggest high rental yields and competition in those cities are making them attractive. Our team’s national reach means we can scout options anywhere and handle remote inspections or bidding on your behalf.
  
• Prepare for borrowing changes: The RBA just lifted the cash rate to 3.85%. This will erode borrowing power (meaning loans must be stress‑tested at higher rates), but so far, it hasn’t caused a wave of buyers to sit out. It will require careful budgeting: use our [Calculators][8] to estimate your new repayment and build buffers. In our experience, simply having an extra 0.5–1.0% buffer on your loan approval can provide crucial headroom if rates rise again.
  
• Act on data, not panic: Houses are still scarce, so deals won’t come to you by waiting. Instead, stay nimble. We recommend lining up finance pre-approval, reviewing your borrowing strategy (interest‑only vs principal repayments), and being ready to move quickly when the right home appears. Every week counts when competitors are in play.
  

Staying ahead of these market shifts is our job at D’MANSHA. Our data‑driven process turns trends and statistics into a clear plan for you. Whether you’re a first-home buyer or a seasoned investor, we can help refine your search, spot value, and negotiate firmly in this environment.

Ready to talk strategy? Call us on 0406 11 22 44 or book a free discovery call now to see how these trends affect your buying power. Visit our calculator page to crunch some numbers first, or check out our LinkedIn and Instagram for buyer strategies. We’re here to help you make the smartest move in a challenging market.