Australia’s Property Market in February 2026: More Listings, But Still Not Enough
If you’ve been watching the property market lately, February 2026 delivered a mixed message: more homes are coming to market, but supply is still well below where it needs to be — and prices have responded accordingly. Here’s what the latest data means for Australian borrowers and buyers.
Listings Are Rebounding — But Supply Remains Tight
According to SQM Research, total national residential listings rose 4.6% month-on-month in February to 226,758 dwellings, driven by a seasonal return of vendors after a subdued January. New listings surged an impressive 48.6% nationally to 76,077 dwellings — the strongest monthly rise since spring.
However, the recovery still falls well short of easing the broader supply crunch. Total listings are 9.1% lower than a year ago, and older stock (properties on the market longer than 30 days) is 12% lower year-on-year. For cities like Perth (-25.7% year-on-year) and Brisbane (-21%), buyers are still competing for a very limited pool of properties.
Home Prices Hit a Record High
Despite rate pressures, Australian home prices continued their upward march. According to Cotality’s Home Value Index, national home prices rose 0.8% in February to a record median value of $922,838 — up 13.6% year-on-year. Perth led with a 2.3% monthly rise, followed by Brisbane at 1.6% and Adelaide at 1.3%.
SQM Research’s Weekly Asking Prices Index similarly showed combined dwelling asking prices up 1.9% over the month. These figures reflect a market where demand continues to outpace supply, keeping upward pressure on values across most capital cities.
Vendor Stress Is Low — Good News for Market Stability
One reassuring sign for the overall market: distressed listings (properties being sold under financial pressure) are still 29.2% below February 2025 levels, sitting at just 3,502 properties nationally. Louis Christopher, Managing Director of SQM Research, noted: “At this time, there are no indications of vendor stress across the housing market.”
This suggests that, despite the rate environment, most homeowners remain in a strong financial position — which helps maintain price stability and market confidence.
What This Means for Borrowers: Act With the Right Guidance
Whether you’re a first home buyer navigating a tight market, an existing homeowner considering refinancing, or an investor looking at your options — understanding the current market conditions is more important than ever.
- Buyers: With supply still constrained and prices rising, getting your finance pre-approved gives you a competitive edge and clarity on what you can afford.
- Refinancers: The rate environment has changed. Now is a good time to review whether your current loan still offers competitive choices for your situation.
- Equity holders: Rising prices may have increased your equity — which could open opportunities for investment or renovation.
The key is having personalised assistance from someone who understands both the lending landscape and your individual circumstances.
Need personalised assistance?
Contact Daniel Nguyen, Mortgage Broker at Finance Hub and Networks.
📞 0430 11 11 88
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