First published 20 Oct 2026, 12:00pm
The falling market is spooking many SA buyers and sellers.
South Australians are putting off making major property decisions, with interest rate uncertainty spooking them more than those anywhere else in the country.
New research from Westpac reveals more than one in three – or 38 per cent – of South Australians are delaying plans to buy or sell because they are concerned about interest rates.
It was a concern playing a greater role in SA than anywhere else in the country.
While it was a major concern identified in the latest Westpac Home Ownership Report, housing affordability was the biggest factor impacting their plans to buy or sell (44 per cent).
Almost half – or 40 per cent – said it was a bad time to purchase a first home, while just one in six – or 17 per cent – planned to buy within the next year.
Meanwhile, nearly a quarter of buyers (24 per cent) said they were adjusting their deposit target to adapt to current market conditions, while others were considering a different property type (21 per cent).
Westpac consumer chief executive Carolyn McCann said people right across the country were feeling conflicted about the uncertainty in the current market.
Westpac consumer chief executive Carolyn McCann. Picture: Supplied/Westpac.
“We’re not seeing a mood of crisis, rather a mood of concern,” she said.
“The market has paused as people try to make sense of conflicting signals around interest rates, house prices, cost-of-living pressures and the broader economy.
“While we’ve seen a downturn in mortgage applications of around five per cent since May, activity is beginning to recover with applications up 15 per cent from the July low.
“People still want to buy and sell property, but many are seeking greater certainty before making a move.
“The challenge is that waiting for the perfect moment can mean missing opportunities that are right in front of you.”
Ms McCann said many buyers were adjusting their strategies with the changing market because they believed property remained one of the best ways to build long-term wealth.
Many prospective buyers and sellers are concerned about interest rates and housing affordability.
“But many buyers are worried about getting the timing wrong and are therefore weighing up whether prices could fall further, whether interest rates might move again and whether waiting could leave them in a better position,” she said.
“While recent falls in house prices will be welcomed by first-home buyers looking to enter the market, we also know that housing affordability and availability remains a major long-term challenge for many.”
Latest Oliver Hume research shows 89.5 per cent of buyers in SA during September were purchasing their first home – the highest share over the past year.
Oliver Hume Property Group chief economist Matt Bell said while many were apprehensive about the market at the moment, many first-home buyers were making the most of the opportunity after years of struggle.
Oliver Hume Property Group chief economist Matt Bell. Picture: Supplied.
“First-home buyers are still going to transact whereas second-home buyers, there’s no reason to sell in a falling market,” he said.
“The pain is bigger at the top of the market.”
While easing prices were helpful, Mr Bell said first-home buyers were still up against rising interest rates as they were reducing their borrowing capacity.
“It will be tough until rates stop rising,” he said.
“It’s probably going to be as good an opportunity as any to buy now and over the next six months.”
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