Interest Rate Hikes Reshape Australian Housing

The Reserve Bank of Australia has raised the cash rate four times in 2026, bringing it to 4.60%, its highest level since 2011. This has led to six consecutive months of national home price falls, with fewer transactions and longer selling times.

In Melbourne's western growth corridor, reduced borrowing capacity means buyers have more choice and negotiating power. Sellers may need to adjust price expectations, but resilient employment could prevent widespread forced sales.