Real estate agents reveal their market outlook for 2026

As Australia's property market steps into 2026, real estate agents say momentum is building across multiple fronts, driven by buyer urgency, renewed investor confidence and ongoing supply constraints.

While conditions vary by city and price bracket, the common thread emerging nationwide is intent: buyers are active, engaged and increasingly concerned about missing out.

Nick Johnstone agent Jonty Wells says urgency has returned to the market, particularly among first home buyers.

"I think buyers are feeling if they don't secure a home now, they may miss out and not see this kind of opportunity for a while," he says. "So there's strong intent to buy at the moment, much more urgency."

That confidence is translating into demand for more affordable property types.

"We're seeing huge uptake of units and townhouses under the $1 million mark due to the first home buyers grant," Wells adds.

Buyers, investors and cross-border movement

In Victoria, agents are seeing renewed interest from interstate buyers positioning themselves ahead of a potential upswing.

McGrath listing agent David Cortous says NSW investors are increasingly turning their attention south.

"It seems a lot of NSW investors are making their way down here, hedging their bets that the Victorian market will come strong, especially in the west," he says.

Melbourne-based Jellis Craig agent Elliot Gill says demand remains strong at the upper end, provided homes are move-in ready.

"The market above $2 million is really strong for homes that are renovated," Gill says. "People will pay a premium when the hard work is done."

However, he notes conditions remain uneven elsewhere, saying in the general market, pricing is all over the place. "It's feast or famine with not a lot in between."

In Sydney, R&W Newtown agent Michael Xanthoudakis says competitive pressure is unlikely to ease any time soon.

"High demand and a heated market is driving prices up," he says. "People are wanting to get on board so they don't miss out. The market will go up and up in the new year, unless rates go up."

Highland Inner West agent Bryan Mahlberg agrees.

"Enquiries are strong, and there's been an increase in buyers getting pre-approved," he says. "Many want to purchase now because they're worried about increased demand and don't want to be left in the cold."

Supply shortages and lifestyle pull

Across several markets, limited stock continues to underpin price pressure. In Perth, Ray White agent Thomas Jefferson Wedge says there's been a serious uptick in properties.

"We're getting lots of calls from the eastern states for every listing," he adds.

Fellow Perth agent Emma Guthrie says buyer confidence remains firm, even as prices rise.

"There's been such high demand, and I can't see it slowing down," she says. "Prices are buoyant. I'm also seeing more second home buyers upgrading while holding onto existing properties."

In Adelaide, Alexander Real Estate agent Penny Riggs describes a market still running hot.

"There's really been a bounce. Everyone is in a buying mood," she says. "The market has been so strong for so long, there's so much demand - maybe too much."

OC agent James Robertson expects activity to remain concentrated in the middle price brackets.

"Homes in the $1 million to $1.5 million range are very active," he says. "I see inventory increasing in 2026, but demand certainly won't die off."

What lies ahead in 2026

While optimism is widespread, some agents are approaching the new year cautiously. Ray White Sydney agent Dalton Stewart describes conditions as uneven but improving.

"It's a patchy market at the moment, but I personally think stock will increase with demand in the new year," he says.

In regional Victoria, Ray White agent Mark Williams says first home buyer incentives are helping maintain balance.

"The five percent deposit scheme is increasing confidence," he says. "There are still plenty of buyers wanting to buy and plenty of sellers willing to sell."

Taken together, agents predict 2026 will be defined by strong buyer intent, constrained supply and selective competition, rather than a broad-based slowdown.

For buyers and sellers alike, the message is clear: momentum is carrying forward, and the market is unlikely to stand still.