The Market This Week

The Reserve Bank has increased the official cash interest rate for the third time this year to 4.35%. We are now back to the level we were at in January 2025. In this time interest rates fell which increased the strength of the market and sale prices which peaked around October 2025. Then prices eased off as the cost to borrow increased and consumer sentiment fell as interest rates rose again.

What we were seeing in the real estate market was initially was mild caution at the start of the year which increased significantly with the start of the Iran War as petrol prices started increasing. In the last 3 weeks buyer confidence has picked up and people are happy to make offers on properties. We feel prices are off at least 5% to 10% since October last year. All up we are back to where we were 18 months ago. 

Where to next is anyone’s guess. However this week it has been noticeable that people that were thinking about selling this year have put their plans on hold as they see the market being weaker. This will keep prices firmer as there will be less choice for buyers. The other point to note is in this market it is a great time to upgrade because the percentage fall in a more expensive home is larger than the dollar value of a percentage fall of your current home. As previously mentioned, we are seeing buyers actively submit offers. The market is still transacting.