Rateseeker Round-Up: June Property Market Update

Rateseeker Round-Up: June Property Market Update

What Borrowers Need to Know as FY26 Approaches

Australia is approaching the end of the financial year, and for property buyers, owners, and investors, the market continues to shift in ways that influence borrowing decisions and housing strategy. After eight consecutive months of rising prices, momentum remains strong, but the conditions beneath the surface tell a more complex story.

This month’s Rateseeker Round-Up breaks down the latest trends shaping Australia’s residential property market. We’ll explore where prices are moving, whether buyers still have bargaining power, and what the latest Reserve Bank decision could mean for your borrowing plans in FY26.

Here’s what we’re covering in this June update:

• Property prices keep climbing — with some cities leading the pack
• Homes are selling slower, signalling changing market dynamics
• Affordability pressures are driving first home buyers towards smarter buying strategies
• The RBA cuts the cash rate — and doesn’t rule out more easing
• Practical steps to protect (and grow) your borrowing power this year

Let’s dive in.

Prices Keep Rising: 8 Months of Growth and Counting

Home prices across Australia rose again in June, marking an eighth straight month of growth and reinforcing that demand remains resilient even as buyers face high living costs.

Recent data indicates:

• Capital cities continue to outperform regional markets
• Unit prices are gradually catching up as affordability constraints push buyers into apartments
• Investors are cautiously returning, thanks to improved yields and rental shortage support

With limited housing supply still the dominant theme — particularly in major urban markets — buyers are often faced with strong competition when the right property hits the market.

Where Strength Is Most Evident

Brisbane continues to gain attention from buyers priced out of Sydney and Melbourne. Adelaide also remains a standout, supported by relative affordability and strong migration.

Even as prices rise, buyers are becoming more selective. Properties that require renovation or lack key features such as parking or outdoor space are taking longer to sell compared to turnkey homes in desirable suburbs.

Homes Are Taking Longer to Sell — But Sellers Still Have Leverage

The latest data shows the median time to sell a home by private treaty has increased from 27 to 30 days over the past year. For buyers, that signals a mild slowdown in urgency.

However, the median vendor discount has narrowed from 3.3% to 3.2%. 

Translation:

• Homes are spending longer on the market
• But sellers are still achieving strong sale prices

This suggests buyers are negotiating, but there’s a limit to how far sellers are willing (or needing) to discount.

What This Means for You

If you’re buying:
You may have more time to complete due diligence and secure loan approval, but still expect competition for well-located properties.

If you’re selling:
Pricing realistically from day one remains essential. Strong marketing and presentation continue to make a difference when separating from the pack.

Affordability: The Pressure Isn’t Letting Up

Median house prices in Australia are now more than 7x the average household income — leaving first home buyers with some of the toughest conditions in decades.

Add to that:

• Stubbornly high rental prices
• Higher living expenses
• Larger deposits required to avoid costly LMI
• Wage growth that is steady but not surging

Many Australians still want to buy, they simply need a different strategy to enter the market.

The Top 3 Strategies First-Time Buyers Are Using in 2025

Rentvesting — renting where you want to live, buying where you can afford
Entering the market with a unit or townhouse first rather than a detached home
Leveraging parental gifting & guarantor loans to reduce time spent saving a full deposit

Government incentives, though beneficial, aren’t enough on their own to offset price growth, meaning buyer education and finance structure matter more than ever.

If you’re unsure where to start, our Home Loan Strategists can help you weigh up entry pathways based on your financial goals.

Cash Rate Cut Delivered — and More May Be Coming

In May, the Reserve Bank of Australia (RBA) cut the cash rate to 3.85%, and the Board indicated it is ready to provide further support if required.

Here’s what the RBA is balancing:

While cuts won’t send borrowing power surging overnight, they help:

• Improve serviceability
• Reduce repayment strain on variable-rate borrowers
• Strengthen property confidence heading into FY26

Potential Outcomes If More Cuts Arrive

• Borrowing capacity may lift gradually
• Investor lending could increase
• Strong regional markets may heat up further
• Competition for family homes could intensify

If you’re planning to buy this year, now is the time to reconsider your borrowing strategy before conditions accelerate again.

What Buyers Can Do Right Now to Improve Their Position

With prices rising and days-on-market stretching, FY26 may offer a very specific window of opportunity for prepared buyers:

• Slightly slower sales give buyers breathing room
• Fresh rate cuts could improve affordability
• New financial year = new government incentives released
• Banks adjusting lending appetite may increase borrowing capacity

Below are actionable steps to secure an advantage:

1. Get Pre-Approved Before You Start Browsing

Not only does this define your budget — it puts you at the front of the queue when the right home hits the market.

2. Strengthen Your Deposit Position

Even a small improvement can lower repayments and open doors to more competitive loan options — especially if avoiding LMI becomes possible.

3. Improve Your Credit Health

Minimising unsecured debt and reducing credit utilisation can have a meaningful impact on borrowing power.

4. Compare Loan Features, Not Just Rates

Offset accounts, redraw, and flexible repayment structures can save borrowers thousands over the long term.

5. Consider Up-and-Coming Suburbs

Amenities, transport access, and urban development indicators can provide a pathway to capital growth without the city-centre price tag.

If you want help assessing where you stand — and what moves could strengthen your finance — we can guide you through it clearly and quickly.

Borrowers Are Turning to Brokers More Than Ever

The shift away from traditional banking continues to accelerate. With branch closures increasing and lending policies changing frequently, more Australians are relying on mortgage brokers for personalised support.

Latest research shows:

• Brokers now write 77.6% of all new home loans
• Clients benefit from wider choice across dozens of lenders
• Best Interests Duty ensures recommendations put borrowers first

At a time when every dollar counts, this guidance matters.

The Bottom Line: FY26 Rewards Prepared Buyers

The June property market shows a blend of confidence and caution:

• Prices are rising, but buyers have regained some leverage
• Homes are selling slower, yet still at strong price points
• Rate cuts have landed, with more possible
• Entry strategies are evolving to match affordability pressures

Those who plan ahead could secure the best outcomes in the new financial year — whether buying, refinancing, or investing for long-term gains.

If you’re ready to take the next step or would like help exploring your finance options, our team is here to assist — from strategy to settlement.