Market Update: Interest Rates, Tight Supply & Why Now Can Still Be a Smart Time to Sell

Market Update: Interest Rates, Tight Supply & Why Now Can Still Be a Smart Time to Sell

The Reserve Bank of Australia (RBA) has raised the official cash rate again — a move that will affect mortgages nationwide — and here on the Capricorn Coast, market dynamics continue to evolve in ways that genuinely matter to local homeowners.

As owner-occupiers and investors navigate rate changes, holding costs and limited listings, one question keeps coming up:

👉 “Is now a good time to sell?”

The short answer: Yes — especially for owners in strong equity positions and those who’ve been hesitant to list because of supply concerns.

📈 Interest Rates — What Just Happened

The RBA recently increased the official cash rate by 25 basis points, shifting the variable home loan landscape once again. While this was widely anticipated following ongoing inflationary pressure, it doesn’t alter the underlying strength of many regional markets, including the Capricorn Coast. In fact, economists observed in the latest HTW Month in Review that much of Australia’s property market remains resilient. (Source: HTW Market Commentary)

Here’s what this means for typical mortgage holders:

• On a $600,000 loan, repayments could increase by approximately $90–$95 per month each time banks pass on the full rate rise.
• On a $830,000 loan — closer to our local median — that increase can be around $125–$140 per month.
• For borrowers with larger loans, the monthly impact grows proportionally.

This isn’t a financial shock for most homeowners — it’s an adjustment. But it does sharpen focus on debt servicing and financial planning for both buyers and sellers.

🏡 Market Context: Capricorn Coast Still Tight

According to realestate.com.au data that we track and report through the Capricorn Coast Market Update, there are only around 260 properties currently available for sale on the Coast — an extraordinarily low level of supply given ongoing buyer interest.

Median house price on the Capricorn Coast has now lifted to approximately $830,000, reflecting sustained demand across key coastal and hinterland suburbs.

By comparison, the national median sits around the mid-$900,000s — roughly $950K — indicating that our region still offers relative value alongside lifestyle appeal.

📅 Council Rates — A Reality Check

Livingstone Shire Council issues rates every six months, and many residents are receiving their notices right now. While this isn’t unexpected, it does remind homeowners of ongoing holding costs, sometimes prompting people to revisit their longer-term plans — especially if they’re carrying higher mortgage balances or considering lifestyle changes.

🧠 National Market Still Stable

While every location has its nuances, broad market analyses — including reports like the HTW Month in Review — highlight that much of Australia’s housing market remains in reasonable shape, with prices holding up well in many regions, volumes picking up and buyer enquiries steady in coastal and lifestyle areas.

🧍‍♀️ Seller Avatar: Who Should Consider Selling Now?

You might be reading this and thinking:

• “I’ve been meaning to sell but there’s nothing to buy.”
• “I’m not sure where I’d go, but I want to capitalise on equity while demand is strong.”
• “Interest rates have changed — should I wait or act?”

If any of this sounds like you, here’s the profile of the homeowner who is particularly well-positioned to benefit from listing now:

🏠 Meet the Savvy Capricorn Coast Seller

✔ Owned their property for 5+ years, building strong equity
✔ Is up-sizing, down-sizing or relocating for work/family/lifestyle
✔ Has a stable financial position (good equity + manageable repayments)
✔ Knows that supply shortages mean serious buyers will consider their home
✔ Wants to avoid potential future rate pressures affecting buyer borrowing capacity
✔ Wants clarity and certainty around their next move

This seller benefits from high buyer demand + low inventory + lifestyle market appeal, which often translates to stronger results and faster sales — especially when listings are well-marketed and positioned.

📊 Why Now — And What’s Next

Low supply + strong interest = an environment that rewards sellers who price appropriately and work with an agent who truly understands local nuances.

While interest rates may rise further depending on inflation trends, much of that outlook is already priced into market expectations. For owners ready to make a move, acting now puts you ahead of potential tightening in borrowing capacity — without waiting and hoping for “more favourable conditions.”

📍 Your Local Expert

As someone who lives, works and breathes the Capricorn Coast property market — backed by regular data tracking and on-the-ground insight — I’m here to help you:

✔ Understand what your home is worth today
✔ Navigate the market with confidence
✔ Strategise your next move with clarity

Ready to find out what your property could achieve in today’s market? Let’s have a conversation.