Buying Better in 2026: The Mistakes That Cost Buyers Time, Money and Energy
January 2026
Melbourne Market Update
Buying Better in 2026: The Mistakes That Cost Buyers Time, Money and Energy
On-the-Ground Insight
Step Inside!- This unique Northcote townhouse
Melbourne Market Update
2025 Market Wrap
2025 was a year of recovery and resilience for the Melbourne property market. After underperforming some other capitals earlier in the cycle, the market regained momentum through 2025, with outcomes increasingly determined by property quality, location and realistic pricing rather than broad market sentiment.
Rather than a single dominant trend, the year highlighted the importance of preparation and selectivity, particularly in well established suburbs where stock remained limited.
2026 Outlook
As expected, activity slowed through late December. Early January signs suggest buyer interest is beginning to return, while stock remains tight in many eastern suburbs, particularly for well presented homes.
Looking ahead, most major property forecasts anticipate further growth in 2026 across the combined capital cities, albeit at a more moderate pace than in 2025. National research suggests capital city home prices overall could rise by around 6 per cent this year, with unit values also expected to climb. Domain research anticipates prices reaching fresh record highs by the end of 2026, supported by tight supply and ongoing buyer demand.
Melbourne’s market specifically is forecast to enjoy solid price growth in 2026, reflecting its rebound from earlier weakness. Some industry projections expect Melbourne house prices to rise by around 6 per cent to 6.6 per cent.
Buying Better in 2026: The Mistakes That Cost Buyers Time, Money and Energy
A quick note. This article is slightly longer than usual. That is deliberate. Buying a home is one of the biggest financial decisions most people make, and this is a topic where oversimplifying can do more harm than good.
Many buyers enter the new year either having missed out in 2025 or deciding that 2026 is the year they finally buy. They all start with good intentions, but few are ever taught how to buy property properly.
Over time, the same mistakes tend to repeat. Not because buyers lack effort, but because key decisions are made without experience or the right information. The good news is that many of these mistakes are easy to avoid once you know what to look for.
Mistake One: Not Creating a Clear Brief
A clear brief doesn't lock you in. It focuses your effort.
Without clearly defining must haves, nice to haves and negotiables, buyers often spend months attending inspections trying to work things out as they go. That usually leads to wasted time and decision fatigue.
Writing your brief down creates a filter. It helps you assess properties faster and act with confidence when the right one appears. If there is more than one buyer involved, alignment is critical.
I use a simple written brief template with clients and I am always happy to share this with anyone who would find it helpful.
Mistake Two: Over Reliance on Price Guides
Price guides are not a valuation. They are a marketing tool.
They help buyers search online, but they do not reflect what a property is worth or what a seller will accept. The best way to understand value is by reviewing comparable sales of similar properties in the same suburb that have sold recently.
Even one or two good comparables can provide a far clearer picture than any advertised guide.
Mistake Three: Waiting for the Perfect Time
There is never a perfect time to buy property. When conditions feel clear, competition is often strongest.
Waiting for certainty can mean missing opportunities while prices continue to move. In many cases, the capital growth forgone outweighs the impact of modest interest rate changes.
This does not mean overextending. Sensible budgeting and buffers matter. But waiting indefinitely for everything to align rarely leads to better outcomes.
Mistake Four: Over Reliance on Real Estate Agents
Agents work for the seller and are legally required to achieve the best possible price for their client.
While most agents are professional, buyers should always independently check information provided. Reviewing comparable sales, checking planning controls and doing basic due diligence can prevent costly mistakes.
Relying solely on someone whose role is to negotiate against you is not a sound strategy.
Mistake Five: Underestimating Emotional Fatigue
Buying a home often takes on average nine months in Australia. That is a long process and it takes a toll.
Fatigue can lead buyers to disengage or settle for the wrong property simply to be finished. Preparation, realistic expectations and the right professional support help buyers stay clear headed throughout the journey.
On-the-Ground Insight:
One noticeable shift this year is how early the market is waking up. More agencies are launching campaigns in January rather than waiting until February, and in several eastern suburbs, activity is already well underway. Buyer enquiry has returned quickly after the summer break, particularly for well presented homes.
I attended my first auction of the year on 17th January in Blackburn North, which delivered a strong result and solid competition. It was an early reminder that while January is traditionally quieter, serious buyers are already active and prepared to move when the right opportunity comes up. For buyers who are organised early, this period can still offer opportunities before competition fully ramps up later in the year.
Step Inside!
31 Leonard Street, Northcote
Price Guide: $3,400,000 - $3,600,000
5 bedrooms | 3 bathrooms | 2 cars | 324 m2
There are plenty of contemporary townhouses across Melbourne that look much the same. This is not one of them. Designed by Auhaus Architecture, this multi-level home stands apart for its individuality, craftsmanship and the way it genuinely feels like a home rather than a design exercise.
Polished concrete and timber floors, curved detailing and a leafy internal light well create warmth and flow, while the kitchen balances strong design with everyday practicality. A north-facing deck with built-in BBQ opens directly onto McAdam Reserve, offering a rare sense of space and connection to parkland this close to the city.
Buyer’sTip
Write your buying brief down. Being clear on your 'must haves' and 'negotiables' can save months of wasted inspections and help you act confidently when the right home appears. It also helps align all decision makers from the beginning (which is more common than you would think!).
I have a simple brief template that I use with clients and I am happy to share it with anyone who would like a copy. Just email 'Client Brief' to [email protected]
Closing Thoughts
While market conditions will always fluctuate, the fundamentals of buying well rarely change.
Understanding value, being realistic about timing, and avoiding common mistakes can make a meaningful difference to both the outcome and the experience.
January is a natural time to reset and prepare before competition and urgency return later in the year.
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
Justin Valentine
0439 690 248
