Australia's housing market levels out as rate hikes squeeze buyers
Australia's housing market is levelling out after a string of Reserve Bank rate hikes. Buyers are recalculating their budgets as borrowing capacity erodes, and new listing volumes have stayed soft for weeks.
Latest data from Australia's housing market show prices flattening out after a sequence of Reserve Bank rate increases. Listing volumes in Sydney and Melbourne have stayed below year-ago levels for weeks, while prospective buyers are accelerating budget reviews.
The picture is the direct expression of the central bank's tight monetary stance against inflation. Higher fuel prices linked to the Iran war and choppy international capital flows have pushed Australian banks' mortgage funding costs higher. Reserve Bank officials say no rate cut is on the table before year-end.
Developers are recalibrating their 2027 construction pipelines. The social-housing waiting list sits at a record; the federal government is expected to announce a buyer-support package in its November budget. Bank analysts project a mid-single-digit move in house prices this year, with rental inflation still running in double digits.
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