Caution and long-term thinking as budget adds to softening real estate market
The South Australian housing market is experiencing a slowdown due to rising interest rates and recent tax changes. Real estate agents report a decrease in buyer activity as uncertainty grows, with expectations that house prices may only rise in line with inflation moving forward. While some buyers hope for a more favorable market, concerns about supply and investor behavior persist.
- ▪Interest rates have risen three times this year, contributing to a softening real estate market.
- ▪The federal budget announced changes to capital gains tax and negative gearing, impacting investor behavior.
- ▪Auction clearance rates have dropped significantly, indicating reduced buyer confidence.
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Tax changes add to softening house sales caused by interest rate rises, agents sayBy Stephanie Richards, Eugene Boisvert and Peta DohertyTopic:BudgetSat 23 May 2026 at 4:56pmSat 23 May 2026 at 4:56pmSat 23 May 2026 at 4:56pmThere was only one bidder at this auction at Rostrevor run by real estate agent Tom Hector (left) on Saturday. (ABC News)In short:Interest rates have risen three times since the start of the year and tax changes were announced in the federal budget.One real estate agent says fewer people are looking to buy amid uncertainty about the market.What's next?Buyers are hoping the changes will lead to lower prices for them.abc.net.au/news/federal-budget-softens-adelaide-real-estate-market/106714306Link copiedShareShare articleAfter riding a post-COVID wave of booming prices,…
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