Subject: Dwelling prices in 26 My two bobs worth

⚡️ Highlights:

1. Australian dwelling values rose almost 9% in 2025, but the conditions that drove recent gains are fading, with prices likely to increase more slowly and unevenly in 2026.
2. Supply shortages remain structural, borrowing costs are likely to rise further, and markets are fragmenting by product and location.
3. The RBA is more likely to tighten than ease, potentially reducing borrowing capacity and impacting housing market dynamics.
4. Market fragmentation deepens, with performance varying sharply by product, price point, location, and buyer cohort.
5. Rental pressure persists, with low vacancy rates and fierce competition for rental stock likely leading to political intervention and potential impacts on housing demand.

✍️ Matusik Missive | Full Article

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