With interest rates rising, headlines shifting weekly, and property prices behaving very differently across the country, it’s no surprise many Australians are taking a step back to reassess.
But here’s the reality we’re seeing on the ground in Perth…
Not all markets are created equal right now and a clear split is appearing nationally.
While some cities are slowing, Perth is still moving – and in many cases, moving quickly.
Let’s break down what’s happening and what it actually means for you.
Interest Rates: What’s Happening Right Now?
Inflation is starting to ease slightly, with the Consumer Price Index (CPI) rising 3.7% over the past year to February.
At the same time, underlying inflation (trimmed mean) is holding at 3.3% — which tells us price pressures are still sticking around in the system.
Following the Reserve Bank of Australia’s March decision, the cash rate now sits at 4.10%, with most lenders passing on the full 0.25% increase.
And importantly… we’re not out of the woods yet.
There’s ongoing discussion around further rate rises, particularly with global pressures (like energy prices) still in play. The RBA has made it clear they’re prepared to keep rates higher for longer if needed to bring inflation under control.
What does that mean in real terms?
If the RBA does increase the cash rate again in May, the 75 basis point increase since the start of the year would add roughly $239 a month to repayments on a $500,000 home loan, or $478 a month on a $1 million loan.:
- A $500,000 loan could cost roughly $239 more per month
- A $1,000,000 loan could increase by around $478 per month
That’s not insignificant — and it’s exactly why reviewing your loan strategy right now matters.
Property Prices: Perth Is Playing Its Own Game
Here’s where things get interesting.
Across Australia, we’re seeing a split market:
- Sydney & Melbourne → slowing or flat
- Smaller capitals → still growing
- Perth → accelerating
In fact, Perth property values rose 7.3% in just the first quarter of 2026, adding around $69,000 to the median value.
That’s a huge shift in a short period.
Why?
It comes down to one simple factor: supply vs demand.
Perth is currently experiencing:
- Extremely low stock levels (around 40% below the 5-year average)
- Strong population growth
- Continued affordability compared to eastern states
This combination is pushing prices up — even while interest rates are high.
But here’s the key insight…
This pace of growth won’t last forever.
We’re already seeing signs nationally that:
- Buyer urgency is easing
- Stock levels are increasing in some markets
- Affordability is starting to bite
So timing and strategy matter more than ever.
So… What Should You Be Doing?
This is where most people get stuck — because there’s no “one size fits all” answer.
If you’re buying:
In Perth, speed and preparation matter.
You’re competing in a market with:
- Limited stock
- Strong demand
- Fast-moving listings
That means having your finance ready to go is critical — not something to sort out after you find a property.
If you already have a home loan:
Now is the time to ask a simple question:
“Is my current loan still working for me?”
With rates changing and lenders adjusting pricing, many borrowers are:
- Sitting on outdated rates
- Missing better options
- Paying more than they need to
A quick review can often uncover opportunities to reduce repayments or improve flexibility.
If you’re investing:
This is where the “two-speed market” really matters.
Perth is still showing strong growth fundamentals, but:
- Entry prices have moved quickly
- Rental demand remains high
- Timing is becoming more important
The right strategy now isn’t just “buy anything” — it’s about buying smart in the right location.
The Bottom Line
The market isn’t crashing.
It’s not booming everywhere either.
It’s changing — and Perth is one of the few places still pushing forward.
That creates opportunity… but only if you approach it the right way.
Need a Clear Plan?
At Fox Mortgage Services, we don’t take a one-size-fits-all approach.
We look at:
- Your current position
- Your goals (short and long term)
- What lenders are actually offering right now
Then we map out a strategy that makes sense for you — whether that’s buying, refinancing, or simply understanding your options.
We’ve built our business on long-term relationships, not quick transactions, and we’ll always take the time to find the right solution for your situation.
Let’s Chat
If you’re unsure what your next move should be — that’s completely normal in a market like this.
Reach out for a quick, no-pressure chat.
We’ll help you understand where you stand and what your options are, so you can move forward with confidence.
Additional sources
Cotality Data Daily Home Value Index: Monthly Values
https://www.cotality.com/au/our-data/auction-results
https://www.realestate.com.au/auction-results/