Overview
- The Reserve Bank paused its rate moves on Tuesday after three increases earlier this year that have materially raised mortgage repayments and cut buyers’ borrowing capacity.
- House values in Sydney and Melbourne have declined across most price tiers with the upper quartile—family homes—falling about 4% over the three months to the end of May.
- Perth has recorded the strongest gains, up about 25.8% year‑on‑year, and the household income needed to afford a median Perth house has risen to roughly $123,787 from $107,329 in January.
- Federal measures including a 5% deposit scheme and proposed limits on negative gearing and capital gains concessions are cooling investor activity in some segments while keeping competition in the lower quartile.
- Economists warn the pattern could widen into a broader correction, pointing to growing vendor discounts, rising affordability barriers and spring listings as the key near‑term test.