Real estate sales slow down due to higher

interest

June 2026 Elevated interest rates have reduced the borrowing capacity of prospective home buyers, with many real estate agents reporting that the housing market is beginning to level out after a period of strong growth. The Reserve Bank increased interest rates by 0.25 percentage points to 4.35 per cent on Tuesday, placing the cash rate at its highest level since February 2025. While this move is aimed at controlling inflation, it is also increasing financial pressure on households and affecting housing affordability. Property data firm Cotality reports that demand in the housing market is softening, while price growth is slowing across several mid-sized capital cities. This marks a shift from the post-pandemic boom period, when low interest rates and strong demand pushed property prices sharply higher. Now, higher borrowing costs and economic uncertainty are encouraging more cautious behaviour among buyers. For some Australians, these changes are already influencing major financial decisions. Trevor and Sonja Walter recently purchased their first home in Adelaide’s northern suburbs after a six to eight- month search. The couple said the most recent rate rise prompted them to reassess their budget and carefully review what they could afford before proceeding with their purchase. However, not all buyers are finding success in the current market. House hunter Hossein Ranjbar has struggled to secure a property in South Australia, explaining that many homes he is interested in are already beyond his budget. Despite making several offers, he has been consistently outbid, often by buyers with greater financial capacity. He believes the latest rate increase will make it even harder for him and his wife to enter the market. Real estate agents are also noticing a shift in buyer behaviour. Ray White agent Nick Borrelli, based in Adelaide’s inner north-eastern suburbs, has observed increasing hesitation among potential buyers in recent months. He attributes this to uncertainty around interest rates and upcoming policy decisions, including the federal budget. Despite this, some industry professionals believe the market is stabilising rather than declining sharply. While demand has eased compared to previous months, interest from buyers remains steady, though more restrained. In western Sydney, Raine and Horne agent Allana Kazzi said that auction clearance rates in Parramatta have fallen to their lowest level since 2020. South Australian auctioneer Brenton Ilicic suggests that while higher interest rates increase repayments and affect affordability, they do not always lead to a major downturn, as the housing market often adapts to changing conditions.

Greek Tribune Adelaide, South Australia