House prices are expected to reach record highs in all capital cities by the end of next year, according to Domain’s forecast report for 2026. Domain’s report reveals the biggest increase in house prices will be seen in the most rate-sensitive cities of Sydney and Melbourne. Nicola Powell says Sydney’s median house price is expected to hit $1.9 million in 2026, and setting a pathway for a $2 million median house price in Sydney by 2027. Choose your news on the ABC NEWS app and stay in the know: