Welcome to our March Newsletter
There’s often less competition amongst buyers compared to the busy spring property season. Sellers may also be highly motivated to sell before winter arrives, and you may come across more realistic pricing in autumn.
As interest rates and property market conditions continue to evolve, it’s important to stay informed about how these changes could affect your buying, selling or refinancing plans. In this article, we take a closer look at the latest updates on interest rates and what’s happening in the property market, so you can better understand the trends shaping today’s lending and property landscape.
If you’re looking to purchase or considering refinancing, get in touch and we’ll compare the market for you.
The Reserve Bank of Australia (RBA) raised the cash rate again to 4.10% at its latest meeting, following February’s cash rate increase.
This increase comes after concerns that inflation may remain above target for longer than expected. The Consumer Price Index (CPI) rose 3.8% in the 12 months to January, unchanged from the 12 months to December 2025.
Meanwhile, inflation rose again in the second half of 2025 due to stronger demand, ongoing capacity pressures and higher fuel prices resulting from rising global tensions, particularly the conflict in the Middle East.
RBA governor Michele Bullock recently said it was too soon to tell what impact the war would have on Australia’s economy.
“A supply shock could, for example, add to inflation pressures and the potential implications for inflation expectations are something we are very alert to,” she said.
“But at the same time, a prolonged impact on energy markets could have adverse effects on global economic activity and result in downward pressure on inflation. It is not obvious how this might play out.”
Given these factors and ongoing global uncertainty, the RBA decided a rate increase was necessary to help keep inflation under control while noting it will continue to closely monitor economic conditions and adjust policy if needed.
With interest rates shifting, it may be worth to review your home loan and consider whether your current rate remains competitive. If you’re curious about your options, give us a call – we may be able to find a more competitive rate or renegotiate your home loan with your current provider.
The next cash rate decision will be announced on May 5.
February’s interest rate hike did little to dampen property prices in many Australian markets, with national dwelling values increasing 0.8% in February. Across the country, we’re seeing property values diverge.
Perth continues to show strong growth, with prices up 2.3% in February, adding $22,500 to the median property value over the month. Stock in the Western Australian capital is nearly 50% below the five-year average.
Brisbane, Adelaide and Hobart also posted solid gains throughout the month, each recording a rise of more than 1%.
Sydney and Melbourne’s prices were flat in February, compounded by increasing interest rates and weaker sentiment. Sydney’s prices were down -0.1% over the rolling quarter, while Melbourne’s were down -0.4%.
Cotality research director Tim Lawless said that while Sydney and Melbourne had traditionally led Australia’s housing cycles, there had also been periods where the market had moved in a counter cyclical way.
“The clear slowdown in housing conditions across Sydney and Melbourne could signal an easing in growth conditions elsewhere down the track, but for now, the mid-sized capitals continue to see support from extremely low inventory levels, which is boosting the growth in values,” he said.
“Vendors are looking more motivated in Sydney and Melbourne, possibly looking to beat a further softening in selling conditions as clearance rates ease and demand slows. If the typical seasonal pattern holds, the flow of new listings is likely to strengthen leading into Easter.”
Regional markets are outperforming the capitals across New South Wales, Victoria, South Australia and Tasmania. Regional demand has remained resilient due to lower price points and internal migration.
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 1131 | 59% | 1355 | — |
| NSW | 1223 | 53% | 1850 | — |
| ACT | 129 | 58% | 100 | ▲ 0.8% |
| QLD | 244 | 58% | 1093 | ▲ 1.6% |
| WA | 13 | 54% | 537 | ▲ 2.3% |
| NT | 2 | 100% | 21 | ▲ 0.2% |
| TAS | 0 | — | 174 | ▲ 1.2% |
| SA | 155 | 77% | 252 | ▲ 1.3% |
If you’re planning an autumn property purchase, chat to us about your finance options. We can organise pre-approval on your finance, so that you’re prepared and financially ready to dive in.
