Economic Commentary

11 March 2026

Welcome to Cotality (CoreLogic)’s housing market update for February 2026.

The larger capital cities have slowed quite sharply, while the mid‑sized capitals continue to record strong rates of value growth. Home values in Sydney and Melbourne have largely flatlined since December, while the mid‑sized capitals are continuing to record solid monthly growth of more than 1%.

Perth remains the standout performer. In February alone, home values in Perth rose by 2.3%, which equates to more than $22,000 being added to the median dwelling value in just one month. Brisbane, Adelaide and Hobart also recorded monthly gains of more than 1%, continuing a strong growth trend across these markets.

In contrast, Sydney and Melbourne have been less resilient following the February rate hike and a noticeable softening in buyer sentiment. Home values were flat over the month, and on a rolling quarterly basis Sydney values are down 0.1% and Melbourne values are down 0.4%. While these cities have traditionally led Australia’s housing cycles, history shows there are periods where they move counter‑cyclically, and that appears to be the case right now.

One of the most important factors supporting growth in the mid‑sized capitals continues to be extremely low housing supply.

Over the four weeks to March 1^st, Perth listings were 47% below their five‑year average, Brisbane listings were down 30% and Adelaide listings were 22%. That lack of available stock is creating some urgency among buyers.