Housing Momentum Slows Amid Rate Hikes

• The local data flow gathers pace early in the year, with November CPI due tomorrow and likely to be a key near-term focus for markets.
• While the Reserve Bank of Australia continues to place greater weight on the quarterly trimmed mean (next released with December data on 28 January), the monthly print will help sharpen expectations around the inflation trend.
• Housing data pointed to a further easing in momentum, with the Cotality Home Value Index up 0.5% in December.
• Dwelling prices finished 2025 around 8.2% higher, taking the total rebound since the 2022 correction to roughly 25%.
• The loss of momentum in price growth aligns with a lift in rate expectations, as recent inflation data has strengthened the case for policy tightening through 2026.