As we move into February 2026, the NSW property market is operating in a more measured and data-driven environment.
The headline story isn’t boom or downturn — it’s moderation. Prices, demand, and rental conditions remain supported, but behaviour across buyers, tenants, and owners has clearly shifted.
Here’s what current data and on-the-ground indicators are telling us.
Buyer Activity: Stable Demand, Slower Pace
Across NSW, transaction volumes through late 2025 remained broadly in line with long-term averages. However, buyer urgency has eased.
Key indicators show:
– Average days on market increased by around 10–15% compared to the peak periods of 2023–2024
– Clearance rates softened slightly, but generally remained above historical norms
– More conditional offers and longer decision timelines
This suggests buyers are still active — they’re simply taking more time and making more considered decisions.
Price Growth: Continuing, but at a Lower Rate
NSW dwelling values continued to rise through 2025, but growth slowed noticeably.
Data indicates:
– Annual price growth across NSW moderated to low single-digit percentages
– Sydney’s growth rate trailed behind some regional NSW areas
– Price performance became increasingly property-specific
In practice, well-presented homes continued to attract solid interest, while properties with unrealistic pricing expectations experienced longer selling periods.
Supply Levels: Slightly Higher, Still Constrained
Listing volumes across NSW rose modestly through 2025.
Key points:
– Active listings increased by approximately 5–8% year-on-year
– Despite this increase, total supply remains below long-term averages
– Competition is strongest for properties that are well located and well maintained
This balance has contributed to calmer conditions without tipping the market into oversupply.
Rental Market: Tight Conditions Continue
Rental conditions across NSW remain one of the strongest pillars of the market.
Late-2025 data shows:
– Vacancy rates in Greater Sydney sitting around 1–1.5%
– Many regional NSW areas remaining below 2% vacancy
– Rental growth slowing, but still positive compared to pre-2020 norms
While tenants are more selective, demand remains high due to population growth and limited new rental supply.
Interest Rates and Borrowing Behaviour
Although interest rates stabilised during much of 2025, borrowing behaviour has permanently shifted.
Observations include:
– Buyers factoring in higher buffers when assessing affordability
– Fewer highly leveraged purchases
– A stronger focus on long-term holding costs
This has reduced speculative behaviour and contributed to more stable, deliberate market conditions.
What These Numbers Mean in Real Terms
February 2026 is showing a market that is functioning normally — and more sustainably.
The data points to:
– Ongoing demand
– Slower but steadier growth
– Less emotional decision-making
This environment rewards clarity, preparation, and realistic expectations rather than speed.
What This Means for Property Owners
For property owners, current conditions highlight the importance of:
– Pricing that reflects today’s market, not past peaks
– Strong presentation and ongoing maintenance
– Understanding compliance and management obligations
– Making decisions informed by current data
Momentum alone is no longer enough. Structure and strategy now play a bigger role in outcomes.
Final Thoughts
The NSW property market in February 2026 is not standing still — it’s recalibrating.
Moderate growth.
Stable demand.
Clearer decision-making.
Owners who stay informed and proactive are better positioned to navigate this more deliberate phase of the cycle.
If you’re thinking about buying, selling, or reviewing how your property is positioned in the current market, the next step is a clear, informed conversation based on today’s realities — not yesterday’s assumptions.
Contact us.
📧 info@RnJrealty.com.au
🌐 www.RnJrealty.com.au
📞 0433 22 888 1
