February has set the tone for the Australian property market. This year has started with momentum, strong buyer activity, and a clear shift in lending conditions following the recent rate decision by the Reserve Bank of Australia (RBA). For buyers, it is a market that requires clarity, preparation, and the right strategy.
Interest rates are back on the move
This month, the RBA lifted the official cash rate to 3.85%, marking the first increase in three years. Whilst many buyers had grown accustomed to a more stable rate environment, this move is a reminder that borrowing conditions can change quickly.
Higher rates mean higher loan repayments and, in many cases, reduced borrowing capacity. Banks are assessing borrowers more conservatively and applying stricter serviceability criteria, whilst buyers need to revisit their budgets. This has created a layer of caution in the market, but it has not stopped activity.
Prices are still rising despite tighter conditions
One of the most notable trends in February has been the resilience of property prices. Across many markets, house prices have continued to rise. Demand remains strong, particularly for quality homes in desirable locations, and supply is still not keeping up.
Affordability pressure remains intense, especially for first-home buyers. Higher loan costs combined with rising prices are stretching budgets. Even though prices might stop rising as quickly because people can’t borrow as much, the market isn’t expected to crash due to the imbalance between supply and demand.
Buyer activity remains strong
On the ground, we are still seeing serious buyers in the market. Open homes are busy, and well-priced properties are attracting multiple offers. The right homes are selling fast, and decisive buyers are the ones who succeed.
What’s different now is the level of preparation required. The buyers who know exactly what they can borrow, understand their numbers and are clear on what they want are the ones securing property. Those who are still figuring things out are finding it harder to compete. In this kind of market, guidance is a huge advantage.
What does this mean for future buying?
We expect the market to stay competitive, even if the pace of growth steadies.
Over the coming months, strategy and timing will matter more than ever. Knowing which areas are still outperforming, where supply is tightening and how to negotiate in a more cautious lending environment will directly impact results. Not every property will perform the same, and not every buyer strategy will work.
Despite this, there will still be great opportunities in 2026. Markets that shift often create windows for buyers who are well advised and ready to act. When conditions are not overheated, there is more room to negotiate and make clear-headed decisions. The buyers who do well will be those who move forward with clarity rather than hesitation.
How Moove can guide your journey
From our perspective, February has reinforced why it’s critical to have experienced support. Our role is to guide you from start to finish. We help you understand your borrowing position, shape your brief, uncover the right opportunities and negotiate with confidence. In a tighter market, the small details can have a big impact and having an expert on your side matters. Our job is to bring clarity to the process, reduce uncertainty and help you make confident decisions that align with your bigger goals.
If you would like to talk through your plans and what this market means for you, we would love to have that conversation. Get in touch.
