The Reserve Bank’s decision to lift interest rates by 0.25 per cent is expected to have only a modest effect on the Upper Hunter property market, according to Muswellbrook real estate Principal Sandy Warburton. The increase equates to roughly $75 a month on a $500,000 mortgage, and it’s hoped most borrowers were assessed with enough buffer to manage the change.
“One would hope that borrowing or lending policies from the banks have not been such that an $80 increase would make a huge change,” said Warburton.
Demand for homes in the Upper Hunter remains strong heading into 2026, while supply continues to be limited. It’s believed this balance should keep the market relatively steady in the short term, despite the increase in borrowing costs.
The broader Hunter region saw significant growth last year, with regional New South Wales rising 0.3 per cent in January and the Hunter excluding Newcastle recording almost 11 per cent annual growth. Muswellbrook was among the strongest performers, climbing 17 per cent in 2025.
Experts say the rate rise may make buyers more careful in negotiations, but it may also temper overly optimistic seller expectations following last year’s gains. Days on market increased slightly through late 2025, although this is typical for the Christmas‑New Year period.
For now, Sandy Warburton expects stability rather than a sharp downturn.
“I think things will be pretty stable for the Upper Hunter,” he said.
“For buyers and sellers alike, you’ve got that nice middle ground with supply and demand. And if the market’s too turbulent, then that sort of puts everyone off making deals.”
