If you’re buying,refinancing, investing or simply trying to make sense of the market, here’s a quick market update summarising what’s happening in the Australian property market now.
In short, Australia’s property market is still rising and Perth remains one of the tightest and strongest markets in the country. The RBA says that we are still struggling with inflation and rates are likely to continue rising in 2026, meaning borrowers would benefit by being more strategic about their home loans in order to reconcile rising costs.
The national property market
National home prices rose 0.5% in February, taking the national median home value to $897,000. Prices are now 9.1% higher than a year ago, and capital city prices also rose 0.5%, pushing the capital-city median above $1 million for the first time.
That tells us two things. Firstly, higher rates have not had a knock-on effect in stopping price growth nationally. Second, affordability pressure is still building because buyers are dealing with both higher values and a higher-rate lending environment at the same time.
On the lending side, activity is still strong. ABS data for the December 2025 quarter showed the number of new dwelling loan commitments rose 5.1% over the quarter, while the value rose 9.5%. Owner-occupier first home buyer commitments were also up, with the number rising 6.8% and the value rising 15.5%. Investor lending stayed strong too, with investor loan numbers up 5.5% and value up 7.9% over the quarter.
The economic snapshot
The RBA lifted the cash rate by 25 basis points to 3.85% at its 3 February meeting, with that setting effective from 4 February. The next decision is due on 17 March 2026.
Why did they increase rates? In a nutshell – the problem is still inflation. As has been the case for some time – inflation is still proving sticky. The ABS reported annual CPI at 3.8% in January, unchanged from December, while trimmed mean inflation rose to 3.4%. Housing costs remain one of the biggest contributors, with housing inflation at 6.8% over the year.
The labour market is also still relatively firm. Australia’s unemployment rate held at 4.1% in January, with employment increasing and participation staying elevated. That matters because a resilient labour market gives the RBA more room to keep policy tight if inflation does not ease quickly enough.
The RBA’s February Statement on Monetary Policy also assumed a higher cash-rate path through 2026, and Governor commentary last week made it clear the February hike was driven by stronger-than-expected capacity pressures and inflation that is now expected to return to the 2–3% band only in mid-2027.
What rates are doing
For borrowers, this is where things get practical.
At the sharp end of the market, refinance and variable rates are still available from around 5.08% p.a. on some products, while big four rates start from around 5.49% p.a. according to Money.com.au’s rate tables updated today. Of course, those headline rates depend on loan size, LVR and borrower profile, but the gap is a reminder that pricing dispersion is wide right now.
At the same time, some lenders have been lifting fixed rates ahead of, and after, the RBA’s move. Broker News reported NAB lifted fixed home loan rates by up to 0.40 percentage points in January, following similar fixed-rate repricing elsewhere.
In other words: borrowers cannot assume the market is moving uniformly. Some variable offers remain very sharp, fixed pricing has been moving around, and existing customers may be paying well above current market without realising it.
What’s happening in Perth
Perth is still one of the strongest and tightest housing markets in the country.
REA reported last week that Perth dwelling prices had the strongest annual growth in the country, at close to 20% over the past year. Realestate.com.au also noted that Perth’s surge has been among the national standouts despite the renewed rate pressure. As previously stated, this is due to a number of factors including supply, population growth and a low vacancy rate.
REIWA’s latest Perth metro data, updated 8 March, shows a median house price of $873,000 and a median weekly house rent of $720.
Its latest weekly snapshot also shows just how tight conditions still are. As at the week ending 1 March, there were 2,753 properties for sale in Perth, which was 43% lower than a year earlier. Rental listings were also tight at 1,880, down 6.7% year on year.
That combination of strong demand, low supply, still-rising prices and tight rentals, is why Perth continues to feel hot on the ground even with higher rates.
What the major bank outlook is saying
There is still uncertainty around how many more hikes may come. Broker News reported in February that NAB and Westpac expected a hold in March but another hike in May, while ANZ expected a hold for the rest of the year and CBA said the next move would depend on incoming data.
That means the March 17 RBA meeting is important, but the bigger message for borrowers is this: you should be building your strategy around resilience, not around trying to guess the exact next move. If you are holding your breath for the rate announcement every six weeks or so, we’d love to help you with a different strategy for your home loan.
What this means for borrowers right now
For buyers, the market is still competitive nationally and especially in Perth. Waiting for “perfect conditions” could mean facing both higher prices and another rate move.
For refinancers, this is a genuine review moment. Rate ranges in market are wide, fixed rates have been moving, and the lowest advertised refinance offers are materially below where many borrowers are currently sitting.
For first home buyers, the data says demand is still there. ABS lending figures show first-home-buyer activity rose in the December quarter, which means competition in accessible price bands remains real.
For investors, loan demand is still growing and Perth’s rental backdrop remains supportive, but holding costs and structure matter more in a rising-rate cycle.
What’s the Takeout?
This week’s market message is straightforward:
Property prices are still rising nationally.
Perth remains one of the hottest markets in the country.
The RBA is back in tightening mode.
Loan structure, repayment buffers and regular rate reviews matter more than ever.
In this kind of market, the best question is no longer just “What rate can I get?” It is also “How resilient is my structure if rates stay higher for longer?”
If you’re ready to talk to one of Perth’s best mortgage brokers about what you can do, book a free discovery call today.
FAQ’s perth market update
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Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions. The examples used here are illustrative in nature and do not reflect any actual people or clients.
