Is Now a Good Time to Buy a Home in Australia as Rates and Fuel Prices Rise?

Higher interest rates and rising petrol prices would normally cool buyer confidence. That is not what we are seeing.

While fuel costs have dominated the news cycle, property values have kept moving higher in the background. Over the past 12 months, national home values climbed 9.9%, marking the fastest annual pace of growth since June 2022.

That strength has held up even with two rate hikes in 2026 and a cost-of-living backdrop that remains tight for many households. Buyers are still active. Expectations are still firm. And many Australians still believe property prices have further to run.

A recent Westpac-Melbourne Institute survey found a clear majority of consumers still expect home prices to rise over the next year. Only around one in ten think values will fall. That helps explain why Westpac also found that 83% of Australians believe now is the time to buy.

The best time to buy a home in Australia depends on your position

Buying a property is not a small move. Most people only do it a handful of times in their lives. It is personal, financial, and emotional all at once. That means the right timing is not just about the market. It is also about whether you are ready.

That includes your income, savings, borrowing power, and how comfortable you feel managing repayments. This is why getting clear advice matters before jumping in.

Waiting for prices to fall can sound sensible. But it can also backfire. If the market stays firm or prices rise again, sitting on the sidelines may mean paying more later. For many borrowers, the good time to buy a home in Australia is not when every headline looks calm. It is when their finances are in order, and the loan structure suits their goals.

Home values are still forecast to rise in 2026

Higher interest rates are expected to affect the market. But a slower pace of growth is not the same as a major downturn.

ANZ expects price growth to ease rather than collapse. Its forecasts suggest capital city home prices will rise 2.8% in 2026, followed by another 2.1% in 2027.

The bigger story is that conditions will vary by city. Some markets are expected to post strong gains, while others may soften slightly for a period.

Perth is forecast to lead with 12.3% growth this year. Brisbane is tipped to rise 9.7%, while Darwin is expected to gain 8.0%. Adelaide is forecast to increase 5.75%, Hobart 3.7%, and Canberra 1.6%.

Sydney and Melbourne are the exceptions, with values expected to soften by 0.7% and 1.7%, respectively, in 2026. Even then, those are modest shifts rather than sharp corrections. Both cities are forecast to return to growth in 2027, with prices expected to rise by at least 2.6%.

That matters for anyone asking is now a good time to buy a home in Australia, because current forecasts still point to a market that is holding up better than many expected.

Why do many still see this as a good time to buy a home in Australia

One of the biggest reasons prices are proving resilient is simple. Demand is still stronger than supply.

The number of homes listed for sale remains tight. New listings across most state capitals are lower than they were a year ago. At the same time, although more homes are being built, NAB says construction levels are still not keeping pace with population growth.

That imbalance helps explain why values are staying elevated. It is also one reason many households still view this as the best time to buy a home in Australia, especially if they have found a property that suits their long-term plans.

Buyers are still moving when opportunities appear

Limited supply has not scared buyers away. If anything, it has kept competition alive.

Cotality estimates that close to 560,000 homes have been sold so far in 2026. That is almost 6% above the five-year average. NAB has also reported that home loan lending rose sharply in the second half of 2025, with owner-occupiers rather than investors driving mortgage activity in the final quarter of the year.

That says a lot about current sentiment. Rate hikes have not removed demand. Uncertainty in the Middle East has not done it either.

According to realestate.com.au, some first-home buyers and upgraders are treating slower price growth as a chance to act. Auction demand also remains hot in parts of the market that are popular with first-home buyers. In that environment, the best time to buy a home in Australia can come down to spotting an opening before competition builds again.

So, what should buyers take from all this?

No one can say with certainty where prices will move next month or next quarter. Property markets do not follow a neat script.

What we do know is that many Australians who bought earlier are relieved they did. Over the long run, property values have generally trended higher rather than lower. That does not mean every purchase works out perfectly. It does mean that delaying purely in the hope of a big fall can be risky.

If you are trying to decide to buy a home in Australia, the answer depends less on fear-driven headlines and more on your personal numbers. And whether it is a good time to buy a home in Australia for you will come down to readiness, borrowing power, and the type of loan you choose.

Speak with Osinski Finance about your next step

If you are weighing up a purchase, Osinski Finance can help you move forward with clarity. We assist clients with home loans, investing in a property, and becoming a first-time home buyer, with practical guidance tailored to your goals and financial position. Whether you are ready to buy now or are still working out the best time to buy a home in Australia, our team can help you understand your options and choose a loan that fits. Contact us today to discuss your next step. 

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