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Australian Housing Market Stalls as Buyer Demand Plummets​

  • Writer: Conor Keenan
    Conor Keenan
  • Apr 28
  • 2 min read

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Conor's Corner

"The banks' recent moves to lower interest rates ahead of anticipated RBA cuts appear less about supporting existing customers and more about positioning for future market share. With buyer demand falling sharply and signs of correction emerging in the highly leveraged Tier 2 property market, it’s clear that underlying pressures remain skewed to the downside."



Australia's housing market has hit a significant slowdown, with buyer demand plunging and home price growth stalling, according to a recent report by MacroBusiness.


Following a brief uptick after the Reserve Bank of Australia's (RBA) 0.25% interest rate cut in February, momentum in the housing sector has dissipated. CoreLogic's daily dwelling value index indicates a mere 0.2% increase over the past 28 days, signaling a stagnation in price growth. Major cities like Sydney and Melbourne are leading this deceleration, contributing to the overall market's inertia. 


Auction clearance rates have also declined, with the Easter long weekend recording the softest final clearance rate since January at 57.6% across combined capital cities. Preliminary clearance rates have further dropped to 66.1%, the lowest since mid-December 2024. 


Analysts suggest that potential buyers are adopting a wait-and-see approach, anticipating further interest rate cuts from the RBA. Financial markets predict another rate cut in the upcoming May monetary policy meeting, with expectations of three to four additional cuts within the year. 


First-time homebuyers are also awaiting the outcomes of the forthcoming federal election, as both major political parties propose incentives aimed at easing entry into the housing market. Labor's proposed incentives are set to take effect on January 1, 2026, potentially stimulating demand further.


In the interim, the combination of high interest rates and economic uncertainty continues to suppress buyer activity, leading to a stalled housing market that awaits clearer signals from monetary policy and political developments.​macrobusiness.com.au+1macrobusiness.com.au+1



 
 
 

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