RBA Rate Hikes Reshape Australian Housing Market Dynamics

The RBA has raised the cash rate four times in 2026, bringing it to 4.60%, the highest level since 2011. This has led to national home prices falling for six consecutive months, now 3.3% below their March peak.

In Melbourne's western growth corridor, higher interest rates are likely impacting buyer borrowing capacity, shifting demand towards more affordable options like units or outer suburbs. Sellers may need to adjust price expectations to attract buyers.