Australia's property market is changing. With interest rates rising, inflation remaining elevated and property prices falling, buyers and homeowners are facing a different market than they were earlier this year.
While higher mortgage repayments are putting pressure on household budgets, softer property prices and more properties available for sale may create opportunities for buyers.
Here's what you need to know this October.
RBA Interest Rates: Will There Be Another Increase?
The Reserve Bank of Australia (RBA) increased the official cash rate by 0.25 percentage points in September, bringing it to 4.60%, its highest level since 2011.
The latest inflation figures help explain why interest rates remain elevated.
Australia's September quarter Consumer Price Index (CPI) showed annual inflation reaching 3.9%, with prices increasing 1.3% over the quarter. Higher fuel and electricity costs were among the major contributors.
The RBA's preferred measure of underlying inflation, known as trimmed mean inflation, increased by 1.0% over the quarter.
However, there are some encouraging signs. While inflation remained elevated, price pressures showed signs of easing during August and September.
What Happens Next?
The RBA's next interest rate decision is scheduled for 3 November 2026. Market expectations suggest another interest rate increase is possible at the November meeting.
What Does This Mean for Your Home Loan?
For borrowers with variable-rate mortgages, September's interest rate increase could mean higher monthly repayments.
Recent Roy Morgan research also found that 32.3% of Australian mortgage holders were considered at risk of mortgage stress in the three months to August 2026.
If you haven't reviewed your home loan recently, now could be a good time.
A home loan review can help you understand whether your current interest rate remains competitive, if refinancing could be worthwhile or whether a different loan structure may better suit your circumstances.
Australian Property Prices Continue to Fall
According to Cotality, national dwelling values declined 1.1% in September, marking the sixth consecutive month of falling property prices.
The largest monthly declines included:
Brisbane: -1.5%
Sydney: -1.4%
Melbourne: -0.7%
Darwin was the only capital city to record growth, with values increasing 0.4%.
Higher interest rates and affordability pressures have contributed to softer buyer demand.
However, the changing market may also provide opportunities for those looking to purchase.
Properties are taking longer to sell, and the total number of homes available for sale across capital cities is 23.1% higher than a year ago.
For buyers, this may mean more choice, additional time to complete due diligence and greater opportunities to negotiate.
Regional markets have also shown more resilience, with values increasing 5.6% over the past year, compared with a 1.8% decline across the combined capital cities.
What Does This Mean for Wollongong and the Illawarra?
While national property prices are falling, market conditions can vary considerably between individual suburbs and property types.
For buyers across Wollongong and the Illawarra, softer market conditions may create opportunities, particularly for first home buyers and those looking to upgrade.
However, higher interest rates can also affect borrowing capacity, making it important to understand your budget before purchasing.
Whether you're looking to buy in Wollongong, Corrimal, Thirroul, Shellharbour or surrounding suburbs, understanding your finance options early can help you prepare.
At Haus of Loans, we help buyers across Wollongong and the Illawarra compare lenders, understand borrowing capacity and arrange home loan pre-approval.
Is Now a Good Time to Buy Property?
With property prices falling, many buyers are wondering whether they should purchase now or wait.
While softer prices may create opportunities, predicting the bottom of the property market is difficult.
Rather than focusing solely on timing, it's important to consider your financial position, borrowing capacity and long-term property goals.
Obtaining home loan pre-approval before you start searching can help you establish a realistic budget and prepare to make an offer when the right property comes along.
At Haus of Loans, we help clients across Wollongong, the Illawarra and Australia compare home loans, arrange pre-approval and explore refinancing opportunities.
If you're considering buying or wondering whether your current home loan is still competitive, get in touch. We'd be happy to help.