RBA Cash Rate | June 2026
The Reserve Bank of Australia has kept the cash rate target unchanged at 4.35% at its June 2026 meeting, citing ongoing inflation risks and signs that previous rate increases are beginning to slow the economy.
Inflation picked up materially in the second half of 2025, and data confirms this reflected greater capacity pressures in the economy. Headline and underlying inflation remain too high. While oil prices have eased slightly in recent weeks, energy and commodity prices remain elevated following disruptions linked to the conflict in the Middle East, with signs that cost pressures are passing through to the prices of goods and services.
Financial conditions have tightened following three rate increases since the start of the year, and there are early signs that consumer spending growth and housing market momentum are slowing. The unemployment rate was higher than expected in April, though other labour market indicators have remained resilient. The Board held rates steady to assess the full impact of previous increases, while signalling it will raise further if required.
Australian Housing Market Builds Momentum
National Trends
- Australia’s national dwelling values rose 2.1% in the three months to February 2026, with the annual growth trend accelerating to 9.9%, the fastest pace since June 2022.
- The strongest growth is currently seen in the lower quartile (more affordable) segment, where values rose 11.5% over the year, significantly outpacing the 6.6% growth recorded in the upper quartile.
- Combined regional dwelling values rose 3.2% over the quarter, outperforming the combined capital cities, which saw a 1.8% increase.
- While quarterly figures remain positive, the pace of growth has moderated, with Cotality noting this was the smallest rolling quarterly rise since the three months ending July 2025.
Capital City Highlights
- Perth continues to lead all capital cities, rising 6.8% over the quarter and holding at a record high.
- Brisbane maintained strong momentum with a 4.7% quarterly gain, also sitting at a record high.
- Adelaide rose 3.5% for the quarter, remaining at a record high.
- Darwin posted solid growth of 3.0% for the quarter, also at a record high.
- Sydney recorded a softer quarter, down 0.9%, with dwelling values now sitting 0.1% below the November 2025 peak.
- Melbourne continued to soften, falling 1.5% for the quarter and now 2.3% below its March 2022 peak.
Sales, Listings & Market Activity
Sales Activity & Lending
- Cotality estimates 564,483 sales nationally for the year, with volumes 5.5% higher than a year ago.
- Regional sales volumes were notably strong, rising 8.9% annually compared to a 3.7% rise across combined capitals.
- Investor lending surged 31.8% annually and 7.9% in the final quarter of 2025, accounting for 39.7% of all lending — well above the 33.5% decade average. NSW (45.0%) and QLD (40.1%) lead demand.
Listings & Time on Market
- New listings over the four weeks ending 1 March 2026 were 0.1% higher than a year ago, though still 3.9% below the five-year average.
- Total listings remain significantly constrained, down 14.0% annually and 17.8% below the previous five-year average.
- The national median days on market is 27 days, down from 29 days a year ago. Total advertised stock remains low, 2.6% below the same time last year and 9.6% below the five-year average.
- Auction clearance rates softened to 60.9% in the week ending 1 March 2026, below the cyclical peak recorded in late 2025.
Rental Market Trends
- National rents increased by 5.5% over the year to February 2026, continuing the reacceleration in rental growth seen since mid-2025.
- Regional rents (6.0%) continue to outpace capital city rents (5.3%).
- National gross rental yields rose slightly to 3.59% as of April, the lowest level since September 2022, though regional yields (4.2%) remain stronger than capitals (3.4%).
What It Means for Borrowers and Buyers
The RBA held the cash rate at 4.35% in June 2026, pausing after three consecutive increases this year. This pause reflects signs the economy is slowing as intended, though inflation remains too high for the Board to ease.
However, housing market activity remains resilient. Supply constraints continue to support prices, with total listings around 14% lower than a year ago and well below the five-year average, keeping competition relatively strong for available stock.
For buyers, the strong performance of the lower quartile market (+11.5%) suggests affordability remains a key driver of demand. With investors accounting for roughly 39.7% of lending activity, competition for investment-grade property continues to intensify in many markets.
Key Highlights from the Cotality Monthly Housing Chart Pack - June 2026
Momentum moderating: National dwelling values rose 2.1% over the quarter and 9.9% annually, the fastest annual growth pace since June 2022.
Affordability focus: Lower quartile values (+11.5%) continue to outperform the upper quartile (+6.6%), highlighting strong demand for more affordable housing segments.
Investor activity strong: Investors account for 39.7% of total lending by value, well above the decade average and continuing to support housing demand.
Supply constraints: Total listings remain tight, sitting 14.0% lower than a year ago and 17.8% below the five-year average, keeping market conditions relatively competitive.
Rents and yields: National rents increased 5.5% annually, while gross rental yields sit around 3.6% nationally, with stronger yields in regional markets (4.2%) than in capital cities (3.4%).
Looking Ahead
The RBA held the cash rate at 4.35% in June 2026, pausing after three consecutive increases. Inflation remains too high, with energy prices and capacity pressures still feeding through to goods and services costs. While inflation has eased from its 2022 peak, the Board signalled that risks remain that inflation could stay above target for longer than expected.
Despite tighter policy, housing market momentum remains relatively strong. National dwelling values are 9.9% higher annually, led by Perth, Brisbane, Adelaide, and Darwin, while growth has moderated across Sydney and Melbourne.
Supply constraints continue to support prices, with total listings still well below long-term averages. Rising rents and continued investor activity are also helping sustain demand, particularly in more affordable segments of the market.
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