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AAP
AAP
Jacob Shteyman

Rate hikes, affordability won't curb house prices

Sydney is Australia's most expensive market, but house prices are still expected to grow in 2026. (Lukas Coch/AAP PHOTOS)

Despite the threat of higher interest rates and rising affordability pressures, real estate agents and finance professionals remain bullish about property prices this year.

But a divergence is opening up between the NSW and Victorian markets and the mid-tier markets of Queensland, Western Australia and South Australia, data analytics firm Cotality found in its Decoding 2026 report, released on Wednesday.

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