Rates rise but property market well-placed to handle the strain.

The Reserve Bank lifted the cash rate an extra 0.25% to 4.1% this month. But the impact on the property market may be minimal.

In its bid to lower inflation the Reserve Bank hiked interest rates by 0.25% in March. The rationale was high inflation and the risk that this would become ‘baked in’ to the economy and consumer expectations[1].

For anyone with a home loan, the latest rate hike is far from welcome news.

But as we stand in mid-March, the property market appears well-placed to handle higher rates.

Here’s what Raine & Horne are seeing across the network so far.

Strong buyer activity meets increased listings 

Despite cost-of-living pressures from rising fuel costs and higher interest rates, Raine & Horne agents are still seeing plenty of buyer activity.

On the residential property front, Open for Inspection attendance nationally remains elevated month-on-month, up approximately 14.6% in February 2026 compared to January, according to the latest Raine & Horne data.

No doubt, incentives such as the 5% Deposit Scheme will help underpin first home buyer demand.

At the other end of the buyer spectrum, increased volatility across sharemarkets is likely to see increased investor interest in residential property especially as rents remain elevated and vacancy rates are stretched.  

On the supply side, listings are also rising.

Raine & Horne national data shows listings are up 8% year-on-year. This is giving buyers more choice and contributing to a more balanced market.

More broadly, the labour market remains strong, and the fundamentals of the housing market remain intact.

Commercial property outlook

In the commercial sector, higher borrowing costs and rising operating expenses are likely to place some downward pressure on asset values in the short term. This may be more pronounced in rate-sensitive segments such as the office and secondary retail markets.

That said, as the latest edition of Raine & Horne’s Commercial Insights notes, well-located industrial assets and primary retail such as neighbourhood shopping centres are expected to remain resilient, underpinned by strong tenant demand and limited supply.

The team at Our Broker can help

As interest rates climb higher, both home owners and investors need to remain pro-active.

A home loan review by the Our Broker team can identify opportunities to save with a lower rate.

Already, the Australian Bureau of Statistics reports that over 640,000 homeowners refinanced their home loan last year[2].

That’s 73 loans refinanced every hour.

This highlights how Australians are taking advantage of every avenue to secure great home loan value.

The latest rate hike is a cue to check in with the Our Broker team to see if you could save with a lower rate loan.

If you’re considering making a property move this autumn, contact your local Raine & Horne agent today. For those considering their mortgage finances, contact Our Broker on 1800 913 677 or visit www.ourbroker.net.au

[1] https://www.rba.gov.au/media-releases/2026/mr-26-08.html

[2] https://www.ausbanking.org.au/new-data-shows-record-number-of-australians-refinancing-their-home-loan/