Australia’s Housing Market Update – March 2026

The Australian property market continues to evolve, and March has confirmed what many in the industry are already seeing on the ground — we are now firmly in a two-speed market.

National Snapshot – Growth Slowing, But Still Positive

Nationally, housing values recorded a modest rise of approximately 0.3% in March, bringing annual growth to around 9.4%.

While this is still strong, the key takeaway is that momentum is clearly moderating compared to the rapid growth seen through 2024–2025.

• Median home values now sit around $900,000+ nationally 

• Annual growth remains solid, but is trending down

• Interest rate pressure is beginning to influence buyer behaviour

A Two-Speed Market Has Fully Emerged

What’s happening across Australia is no longer uniform.

Stronger-performing markets:

• Perth (+2.3% monthly growth recently)

• Brisbane (+1.6%)

• Adelaide (+1.3%)

Flat or softening markets:

• Sydney (minimal growth / early decline signs)

• Melbourne (largely flat)

This divergence is being driven by:

• Affordability constraints in major cities

• Strong population growth in smaller capitals

• Severe supply shortages in key regions
  

The result: buyers are shifting to more affordable markets, driving growth outside Sydney and Melbourne.

Where the Market Sits Right Now

Across the Illawarra region, we’re still seeing steady underlying demand, but the pace of growth has clearly moderated.

• Buyer enquiry levels remain solid

• Open home numbers are still consistent

• However, urgency has softened

In simple terms: the market hasn’t dropped — it’s matured.

What We’re Seeing On The Ground

From active campaigns across areas like Warilla, Shellharbour, Barrack Heights, and Corrimal:

1. Buyers Are Still There — But Smarter

• Buyers are taking more time before making offers

• Building & pest conditions are back

• Negotiation has returned

2. Price Sensitivity Is Now Key

• Well-priced homes = strong competition

• Overpriced homes = sitting longer + price reductions

3. Days on Market Are Stretching Slightly

• Not dramatically, but noticeably compared to last year

• Presentation and pricing now matter more than ever

The Rental Market Remains Extremely Strong

This is where the Illawarra continues to outperform.

• Vacancy rates remain critically low

• Rental demand is still outpacing supply

• Premium rents are being achieved for well-presented homes

In some cases, we are still seeing:

• Multiple applications per property

• Strong weekly rents well above older market averages

This continues to make the Illawarra a very attractive region for investors.

My Take (What This Means for You Locally)

From what I’m seeing on the ground, the data aligns closely with reality:

• Buyers are still active — but more price sensitive

• Well-priced properties are still selling quickly

• Overpriced homes are now sitting longer

• Rental demand remains extremely strong

The biggest shift is that strategy now matters more than ever.

Final Thoughts

March confirms that we are not heading into a downturn — but rather a more disciplined, data-driven market.

For sellers, this means:

• Pricing correctly from day one is critical

For buyers:

• There are more opportunities to negotiate

For investors:

• Strong rental conditions continue to support long-term growth

If you’re thinking about buying, selling, or investing, now is the time to understand where your property sits within this two-speed market.

Feel free to reach out — I’m always happy to give you a clear, honest view of your position. Data - The Australian