Buyers adjust as RBA keeps watch on inflation and wages
The Reserve Bank of Australia’s latest meeting minutes suggest rates are likely to remain on hold in March, but economists told Domain another increase in May remains a real possibility.
AMP Capital chief economist Dr Shane Oliver said the minutes revealed a hawkish bias, with the board closely monitoring wages, employment and inflation data before shifting again. While higher rates could dampen momentum in the property market, he noted that this was unlikely to be dramatic given clearance rates remain steady.
Other economists also expect further tightening in 2026 as the RBA works to return inflation to its 2%–3% target band while keeping unemployment near 4%.
Despite the prospect of additional hikes, buyer demand remains resilient. Agents report that purchasers are adjusting budgets and property types rather than retreating, suggesting the housing market continues to adapt even as rate settings evolve.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.