Oliver Hume market insights indicate 2026 will be a good year for home building.

According to Oliver Hume Property Group’s latest market insights on the house and land property industry, several key factors have aligned to deliver renewed optimism that Australians will be building in substantial numbers by 2026.

Lower interest rates

Adam Duster CEO of Oliver Hume Home Solutions noted the impact of interest rates on the property industry: “Every 0.25% cut adds roughly $15,000 in borrowing capacity on a $500,000 loan… there’s still around a $170,000 gap between what the average Melbourne buyer can borrow and the cost to build a new home.”

Buyer sentiment

“The cuts have provided much-needed certainty for property investors looking to purchase real estate in Melbourne or Adelaide.”

Demand outlook promising

According to Mr Duster, “The real momentum is coming from demand-side support like the federal government’s Home Guarantee Scheme and the upcoming Help to Buy program, which are bridging that gap for qualified buyers.”

Looking ahead

“We expect steady improvement rather than a sudden surge – especially in Melbourne, where population growth is again outpacing housing supply. For Adelaide, Brisbane, and Perth, supply remains tight, so sales should continue

Read the full article by the REA Group

Image source: REA Group