Confidence Returns to the Market as Rates Hold Steady
As buyer’s agents at Prowealth Properties, we’re watching the latest market news closely. The Reserve Bank has kept the cash rate steady at 3.6%, with inflation around 3.2% (headline) and 3.0% (core). This stability gives buyers more certainty about borrowing costs – but it also means competition stays hot. Demand is strong and housing supply remains very tight, so agents report auction clearance rates hovering near 70%. In other words, prices are still being driven up by keen buyers.
Forecasters expect national home values to keep rising through 2026 – around a 5.1% lift on average. Melbourne leads the gains (+5.8%), Sydney (+5.6%) and Brisbane (+4.8%). In this rising market, data-driven buying is key: as agents, we help clients understand where growth is coming. For example, tight stock means we advise clients to look beyond the obvious suburbs. By analysing forecasts and local vacancy trends, a buyer’s agent can spot locations with strong long-term rental demand and room for growth. As Smart Property Investment notes, low supply “kept pressure on prices” across most capitals, a signal that the market is still rewarding smart choices.
Why Are Some Investors Selling?
Interestingly, many existing investors are choosing to sell. Surveys show a record number of landlords are exiting the market – about 16.7% of investors sold at least one property in the past year (up from 14.1% in 2024). Rising costs are a big factor. Ongoing tax and compliance changes (like higher land taxes, vacancy levies and reform uncertainty) are making old investments less appealing. As one economist puts it, “many investors are simply deciding it’s no longer worth the risk or the cost to hold property”. In plain terms, those who bought at high prices are now facing bigger taxes and unknown policy shifts, so they’re cashing out.
This investor sell-off actually opens a door for new buyers. More listings can soften competition slightly, and sometimes we see good buying opportunities when motivated owners put homes on the market. It’s a balancing act: while fewer landlords can reduce rental stock, it also means first-home buyers or new investors might find deals as others exit.
What This Means for Buyers
For buyers (especially investors or first-timers), the current news is mostly positive. Steady interest rates give you confidence to lock in finance now, knowing lenders won’t immediately cut rates and spark a bidding frenzy. As LJ Hooker’s Mathew Tiller notes, stable rates “provide buyers with some certainty to plan”. At the same time, buyers should be aware that many others are active: clearance rates near 70% mean strong competition at auctions and private sales. In practice, we tell clients to be prepared — have finance approved and act fast on good opportunities.
Low housing supply means location choice is crucial. We encourage buyers to look at suburbs just outside the tightest markets, or areas with upcoming infrastructure, where prices may still rise. For example, suburbs with strong population growth and job outlooks often outperform. By leveraging our local data tools and market reports, we help shortlist suburbs that offer value today and solid capital growth tomorrow.
Policy changes also help. States like South Australia are even proposing big stamp duty cuts to help buyers. The SA Liberals, for instance, want to scrap duty on homes under $1 million for first-home buyers and phase out duty completely by 2041. While it’s early days, any shift like this can improve affordability for new owners. We keep clients informed so they can time purchases around such reforms.
Ready to Get Started?
If you’re thinking of buying now, Prowealth Properties can guide you through every step. Our buyer’s agents know this market inside out and can help you act quickly in a changing landscape. Call us today on 0433 853 248. You can start with a no-obligation 15-minute discovery call to discuss your goals and see how we can help, or book a comprehensive 45-minute strategy session for a deeper property plan tailored to your situation. Our experts will walk you through your borrowing power, the expanded First Home Buyer incentives, and how to seize the opportunities in this market with confidence.
