Australia’s housing market is continuing to defy expectations of a sharper slowdown, with new data from Ray White showing only a modest decline in sales values despite a year marked by economic and political uncertainty.
The group’s May 2026 national sales figures show residential sales values were down just 6 per cent compared with May 2025.
That result came against what many in the industry had expected would be a far weaker period, given the combination of federal budget measures, ongoing interest rate uncertainty and broader geopolitical instability.
While overall activity eased year-on-year, the underlying value of transactions suggests buyers remain active and willing to commit when suitable opportunities emerge.
Month-on-month, the market also showed renewed momentum, with residential sales value rising 6 per cent between April and May. Transaction volumes were steady over the same period.
The figures point to a market that is softening, but not breaking, with activity proving more stable than many forecasts earlier in the year suggested.
Thomas McGlynn, CEO – Performance and Value at Ray White, said the results highlight how quickly conditions have shifted compared to expectations at the start of 2026.
“One of the biggest surprises in the market right now is how resilient it has become,” Mr McGlynn said.
“If you had told most people at the beginning of 2026 that buyers and sellers would be navigating significant tax reform, interest rate uncertainty and an overall cautious consumer environment, many would have expected the market to slow much more dramatically than our numbers suggest.”
He said the data reflects a market that is continuing to function under pressure rather than retreating from it.
“What we’re actually seeing is a market that continues to adapt,” he said.
“Ray White residential sales value in Australia increased from April to May and despite all the uncertainty, sales volumes remain only 6 per cent below this time last year at $6.25 billion. That speaks to a level of resilience that many people underestimate about the Australian property market.”
The results suggest that while sentiment remains fragile, both buyers and sellers are still engaging at scale, keeping the market more active than many anticipated heading into the year.